Inflation and Output Growth Uncertainty and their Relationship with Inflation and Output Growth

By Stilianos Fountas, Menelaos Karanasos, Jinki Kim. 2002

118 citations recorded by the source corpus.

Using a bivariate GARCH model of inflation and output growth we find evidence that higher inflation and more inflation uncertainty lead to lower output growth in the Japanese economy. These results support the argument of a price stability objective for the monetary authority.

Subfields: Economics and Econometrics, Finance

View Paper: https://www.semanticscholar.org/paper/b8cfc93f2cfc9182cdeec5ec758f79d04db083bc

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Economics and Econometrics

1. Menelaos Karanasos
2. Stilianos Fountas
3. Jinki Kim
4. Christian Conrad
5. James E. Payne

In Finance

1. Stilianos Fountas
2. Menelaos Karanasos
3. Jinki Kim
4. Christian Conrad

Citations in the corpus

• Inflation, output growth, and nominal and real uncertainty: Empirical evidence for the G7 (2007, methodology): “To the best of our knowledge, the only empirical studies on this hypothesis are Grier and Perry (2000), Fountas et al. (2002) and Grier et al. (2004) which find no supporting evidence for the hypothesis.”
• Inflation Uncertainty, Output Growth Uncertainty and Macroeconomic Performance (2006, background): “This effect takes place both directly and indirectly, via the nominal uncertainty channel, as put forward by Friedman (1977). This finding supports the view that inflation does have real effects and justifies the goal of a low inflation rate for monetary policy-making.”