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Thursday, August 6, 2020 | History

2 edition of Testing the causality relationship between devaluation and inflation found in the catalog.

Testing the causality relationship between devaluation and inflation

Situmbeko Musokotwane

Testing the causality relationship between devaluation and inflation

by Situmbeko Musokotwane

  • 310 Want to read
  • 18 Currently reading

Published by s.n. in [Lusaka .
Written in English

    Places:
  • Zambia.
    • Subjects:
    • Inflation (Finance) -- Zambia.,
    • Devaluation of currency -- Zambia.

    • Edition Notes

      StatementSitumbeko Musokotwane and Richard Chembe (Research Department, Bank of Zambia).
      ContributionsChembe, Richard., Bank of Zambia. Research Dept.
      Classifications
      LC ClassificationsHG1353 .M87 1992
      The Physical Object
      Pagination8 leaves :
      ID Numbers
      Open LibraryOL1391633M
      LC Control Number92980709

        The study applies Autoregressive Distributed Lags models and the Toda and Yamamoto () causality test to analyze the relationships as well as the causality properties among various pairs of Ghana’s inflow of Foreign Direct Investment (FDI), Inflation and Economic growth for the period to The study finds that Inflation relates inversely with both . A causal relationship exists between sovereign debt and NPLs since the non-causality null hypothesis is rejected in Croatia, Belgium, France, Hungary, Poland, Estonia, Latvia, China, and Russia. Statistical evidence exists against the null hypothesis of an absence of causal relationship between sovereign debts and debt in sample countries Author: Li Liu, Yu-Min Liu, Jong-Min Kim, Rui Zhong, Guang-Qian Ren.

      An example of such principal-agent problems comes from the relationship between the shareholders who own a public company and the managers who run it. The owners would like managers to run the firm in ways that maximise the value of their shares, whereas the managers' priority may be, say, to build a business empire through rapid expansion and. ECONOMICS. The term economics, from the Greek oikonomika, means a science or art of managing the household. In modern usage, it refers to the efficient allocation of scarce resources in the production, distribution, and consumption of goods and services to satisfy various desires.

      The result indicates that one percent increase in openness is associated with a percent decrease in inflation rate. The relationship between real GDP and inflation is .   Impact of macroeconomic factors on stock returns 42 Abstract This paper explores the relationship between Karachi Stock Exchange Index returns and macroeconomic variables by analyzing the impact of macroeconomic variables on stock market returns. For this purpose, the least square technique has been used in regression analysis.


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Testing the causality relationship between devaluation and inflation by Situmbeko Musokotwane Download PDF EPUB FB2

Granger-Causality Between Inflation, Money Growth, Currency Devaluation and Economic Growth in Indonesia, Article (PDF Available) February with Reads How we Author: Akhtar Hossain. Testing for Granger causality between industrial output and CPI in the presence of regime shift: Swedish data December Journal of Economic Studies 31(October) Furthermore, the result of short-run causal relationship based on panel Granger causality reveals the bidirectional relationship between inflation and currency substitution and unidirectional relationship between exchange rate and currency substitution in Southeast : Khaysy Srithilat, Gang Sun, Thongphet Chanthanivong, Maketta Thavisay.

The Relationship Between Stock Prices and Exchange Rates: Evidence From MENA Countries: /ch The relationship and causality between stock prices and exchange rates has preoccupied the minds of economists, investors and Author: Oguzhan Aydemir, Banu Demirhan. Downloadable. The study attempts to analyze the static and dynamic causality between producers’ prices measured by wholesale price index (WPI) and consumers’ prices measured by consumers’ price index (CPI) in case of India.

In doing so, we have applied the autoregressive distributed lag (ARDL) bounds testing approach to co-integration and. In Bangladesh, the inflation rate measures a broad rise or fall in prices that consumers pay for a standard basket of goods 2. 6 Relationship between Inflation and Economic growth The studies that examine this relationship have been increased especially in the asses.

The result of the causality test by Toda and Yamamoto reveals that a unidirectional causality exists between real effective exchange rate and price of exports.

This shows that a significant relationship exists between exchange rate devaluation and gross exports by: 1. and the central bank should eventually monetize the deficit.

This will For Turkey, Metin () analyzed inflation using a gen- impulse dummy rep. The answer to the question of course is no, but let me tell the story anyway. It is a story about positive supply shocks, inflation targeting, relative inflation and bubbles. In Poland joined the EU.

That gave Poles the possibility to enter the UK labour market (and other EU labour markets). The research determines the relationship between inflation, real wages and labor productivity.

Inflation is an increase in the average level of prices of commodities and services within an economy over a period of time, not a change in any particular price. For this study CPI is used as an inflation indicator.

unidirectional causality and no causality relationship between inflation and economic growth. Although, the as a result of the devaluation in naira that occurred at significance when testing the parameters in the model simultaneously.

Table F-test for Model A and B. Granger causality tests indicate that lagged exchange rate changes influence inflation, but lagged inflation does not cause exchange rate changes.

A policy of monetary restriction in the s is shown to cut the inflation rate by five percentage points at about half the cost in lost output as compared with the consensus view from previous studies.

The causal relationship between exchange rates and stock prices in kenya 1. Research Journal of Finance and Accounting N (Paper) ISSN (Online)Vol 3, No 7, The Causal Relationship between Exchange Rates and Stock Prices in Kenya Sifunjo E. Kisaka 1* Anthony Mwasaru 2 1. Determinants of Trade Balance in Ethiopia: an ARDL Cointegration Analysis.

The relationship between exchange rate and the trade balance could be studied based on the there are other approaches to explain the determinants of trade balance (balance of payments) such as the absorption approach and the monetary approach.

Furthermore,Author: Alekaw Yeshineh. In our report, we will not only examine the relationship between real effective exchange rate (REER) and FDI in China, but also we will observe the impacts of exchange rate regime reforms in by empirical test. The Economic Model.

According to a research into the determinants of FDI across China by Qian, Tong and Qiao. This means that the causal relationship between financial development and economic growth in Togo is unique and is running from financial development to economic growth.

The empirical results further confirm a unique cointegration relationship among real GDP per capita, financial development, inflation, primary completion rate, openness Author: Fantessi Amavi Agbelenko.

Hence there is a dynamic non-linear and heterogeneous relationship between fiscal deficit and inflation (Catao and Terrones,Lin and Chu, ). Furthermore, the choice of fiscal deficit measure can also be crucial while testing the effect of budget deficit on by: The biggest worry: Inflation targeting and a negative supply shock.

That said, I am also worried about the momentum of the recovery and I am particularly concerned about the unfortunate combination of the Bank of Japan’s focus on inflation targeting – rather than nominal GDP targeting – than a negative supply shock. The findings of the study suggest that the determinants of inflation differ between sectors (food and non-food) and the time horizons under consideration.

The most important forces behind food inflation in the long run are real income, money supply, inflation expectation and international food price. The long runFile Size: 1MB. This paper attempts to test the pass-through of the real exchange rate (RERT) to unemployment in Brazil over the period M1–M11 using linear and nonlinear Autoregressive Distributed Lag (ARDL) models.

The result of the linearity test suggests that the relationship between RERT and unemployment is linear in the short-run and nonlinear in the by: 1.

Energy Consumption and Economic Growth in Vietnam: Threshold Cointegration and Causality Analysis 16 Erol, U., Yu, E.S.H., On the causal relationship between energy and income for industrializing countries Journal of Energy and Developm – Esso, L.J., Threshold cointegration and causality relationship between energy use.

The test of both the Unit root and co-integration revealed that there is a long relationship between the variables while the Granger Causality test revealed an un-directional relation between."Inflation in Pakistan: Evidence from ARDL Bounds Testing Approach", International Journal of Management Development (IJMD, Inderscience) V, Year: "Analyzing Time-Frequency Relationship between Share Prices and Exchange Rates in India: Evidence from Continuous Wavelets", Empirical Economics, (Springer), DOI /s