Inflation, economic growth and interest rates
This paper deals with the Granger-causality among inflation, economic growth, and interest rates using a wide sample of 189 countries for the 1987-2021 period. For the empirical tests, a novel econometric technique has been employed that allows panel tests when the dataset is balanced. The null hypo...
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| Formato: | artículo |
| Estado: | Versión aceptada para publicación |
| Fecha de publicación: | 2024 |
| País: | España |
| Recursos: | Universidad de Zaragoza |
| Repositorio: | Zaguán. Repositorio Digital de la Universidad de Zaragoza |
| OAI Identifier: | oai:zaguan.unizar.es:145338 |
| Acesso em linha: | http://zaguan.unizar.es/record/145338 |
| Access Level: | acceso embargado |
| Resumo: | This paper deals with the Granger-causality among inflation, economic growth, and interest rates using a wide sample of 189 countries for the 1987-2021 period. For the empirical tests, a novel econometric technique has been employed that allows panel tests when the dataset is balanced. The null hypothesis that one variable does not Granger-causes (GC) another for country-by-country tests is only rejected checking whether lending interest rates GC inflation during the lax period of 2002-2009 when lax monetary policies were applied. Nonetheless, it is found rejection of the null hypothesis for all the combinations of variables during the Great Moderation period for the panel test, in contrast to a mixed result for the rest of periods. This indicates the potential better coordination of rules-based rather than discretionary policies. |
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