A note on excess money growth and inflation dynamics: evidence from threshold regression

We test the effect of excess money growth on inflation using Threshold Regression technique developed by Hansen (2000). The empirical test is conducted using annual data from India for the period from 1953-54 to 2007-08. The results clearly exhibits that the relationship is not linear and without a strong credit growth, excess money growth has lesser inflationary effects.

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Year of publication:	2012-04-11
Authors:	Saumitra, Bhaduri ; Raja, Sethudurai
Institutions:	Volkswirtschaftliche Fakultät, Ludwig-Maximilians-Universität München
Subject:	Excess Money Growth \| Quantity Theory of Money \| Inflation and Threshold Regression

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Extent:	application/pdf
Series:	MPRA Paper.
Type of publication:	Book / Working Paper
Classification:	E51 - Money Supply; Credit; Money Multipliers
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10011108021