This paper investigated the determinants of inflation in the Egyptian economy. Using annual data, covering the period (1991-2012), a Vector Auto Regression Model (VAR) was estimated. The results of the empirical model confirmed that inflation rate responds positively in the first period...

Due to the fact that many reliable indicators of further inflationary pressures do not seem to work anymore, finding whether or not wages Granger cause prices is an important concern for policymaking. However, international evidence on the relationship between wages and prices does not show...

The present study investigates the impact of financial development and globalization on inflation by incorporating foreign remittances and economic growth in inflation function in case of Bangladesh. The study covers the period of 1976Q1-2012Q4. We have applied structural break unit root test to...

Abstract-The purpose of this paper is to test the hypothesis first documented by [1], that inflation is lower in more open economies. According to this hypothesis, central banks have a smaller incentive to engineer surprise inflations in more-open economies because the Phillips curve is steeper....

In this paper we propose to address the issue of monetary economic models that can be used as teaching materials for courses in higher mathematics degree. Specifically, this work is based on a paper by Robert Barro and David Gordon (1983) which models the behavior of a closed economy, with a...

The paper examines the welfare implications of price targeting from the perspective of when central bank has credibility of persistently achieving the target rates and when people have lost confidence on such credibility. In the former, it was observed that the principle of Pareto optimality...

This paper analyses the dynamics of inflation in Bangladesh using vector autoregressive methods over the period from July 1999 to August 2008. Demand side factors are assessed in comparison with cost-push influences with a particular focus on the role of government borrowing from the domestic...

Inflation appears to have emerged as a perennial phenomenon in Bangladesh in the recent past. High inflationary trend that began to show up since the second quarter of FY2010 continued throughout FY2011 and FY2012. In this regard, an empirical examination to explore the major sources of...

This study estimates degree of intrinsic inflation persistence in Pakistan using aggregate price index, group level price indices, and individual commodity prices. We find no evidence of a unit root in (MoM) inflation at any level, except for house rent. Using monthly data from 1959 to 2011 we...

The purpose of this paper is to empirically analyze the effects of the quality of institutions on inflation. Using panel data from 1991 to 2007, we find that increase in institutional development which is measured by the ratio of domestic credit to private sector to GDP has significant and...