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In this paper, we analyze the twin deficits hypothesis covering the period from 1994 to 2012 in Turkey. In contrast to previous studies on Turkey, the existence of twin deficits is investigated by regime-dependent impulse response functions and forecast error variance decompositions based on a...
Persistent link: https://www.econbiz.de/10011263214
Harry Johnson’s 1971 ideas about the factors affecting the success of the Keynesian Revolution and the Monetarist Counter-revolution are summarised and extended to the analysis of the Rational Expectations - New Classical (RE-NC) Revolution. It is then argued that, whereas Monetarism brought...
Persistent link: https://www.econbiz.de/10010835365
through the co-integration and error correction model over a 36-year time period, i.e. between 1975 and 2010. The study … employed the bounds testing approach of cointegration to estimate the long-run relationship between the variables, while an … debt, unemployment and inflation towards imports. There is a bidirectional causality runs between debt and imports, between …
Persistent link: https://www.econbiz.de/10011048722
This paper tries to explore the relationship between, gross domestic product, inflation and real interest rate with the … variables i.e. inflation, interest rate and Gross Domestic Product were used in order to investigate their relationship which … found that that the GDP has significant relationship with the exchange rate where interest and inflation has non …
Persistent link: https://www.econbiz.de/10010850177
in ERPT to CPI inflation for the Finnish economy. Within a logistic smooth transition framework, our investigations …
Persistent link: https://www.econbiz.de/10010936534
This paper measures the impact of price changes on poverty using the Philippines as an example. The impact of price changes is captured by the price elasticity of poverty for three widely used poverty measures, namely, headcount ratio, poverty gap ratio, and severity of poverty. An empirically...
Persistent link: https://www.econbiz.de/10010812027
This paper investigates the existence of a threshold level for inflation and how any such level affects the growth of … observe a nonlinear relationship between inflation and economic growth for 32 Asian countries over the period 1980–2009. We … detect an inflation threshold of approximately 5.43%, at a 1% level of significance. We find that inflation hurts growth when …
Persistent link: https://www.econbiz.de/10010868913
The empirical evidence suggests that there is a significant, negative relationship between inflation and economic …. Therefore the technology of the financial sector influences the velocity of money, and consequently, how inflation affects … generates an inflation-growth effect whose magnitude falls in the range found by the empiri-cal studies. Moreover, in contrast …
Persistent link: https://www.econbiz.de/10005764272
nominal interest rate is equalized with the US federal fund rate, but the inflation rates are independent. High oil prices and … the depreciating US dollar caused inflation to rise and real interest rates to be persistently negative in the UAE and …
Persistent link: https://www.econbiz.de/10008529275
Economists have traditionally viewed futures prices as fully informative about future economic activity and asset prices. We argue that open interest could be more informative than futures prices in the presence of hedging demand and limited risk absorption capacity in futures markets. We find...
Persistent link: https://www.econbiz.de/10010617611