Analyzing the Different Effects of Endogenous and Exogenous Money Supply on Inflation: A Spectral Analysis Approach
In recent decades, the inflation phenomenon has been one of the most important issues for Iranian economy. Regardless of its effects on economy, identifying the determinants of inflation has always been a challenge in all economies. Therefore, in order to compare the endogenous money theory with the...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | fas |
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Tarbiat Modares University
2020-09-01
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| Series: | پژوهشهای اقتصادی |
| Subjects: | |
| Online Access: | http://ecor.modares.ac.ir/article-18-37417-en.pdf |
| _version_ | 1827924904170749952 |
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| author | alireza kamalian Zahra Zamani mohammad Amirali mostafa mobini dehkordi |
| author_facet | alireza kamalian Zahra Zamani mohammad Amirali mostafa mobini dehkordi |
| author_sort | alireza kamalian |
| collection | DOAJ |
| description | In recent decades, the inflation phenomenon has been one of the most important issues for Iranian economy. Regardless of its effects on economy, identifying the determinants of inflation has always been a challenge in all economies. Therefore, in order to compare the endogenous money theory with the quantity theory of money, this study analyzes the relationship between inflation and its determinants. To this end, the spectral analysis approach at high and low frequencies is applied during the period 1991: Q1 to 2018: Q1. The results show that there is the causality relationship from the growth of liquidity towards inflation as well as from inflation to liquidity in the short- term and long-term. In addition, there is the causality relationship from the monetary base growth to inflation in the long-term, while this causal relationship runs from monetary base growth towards inflation in the short-term. Moreover, the causality relationship from money multiplier growth to inflation is confirmed in the long-term. Consequently, the causes of inflation are different in the short- and long-term. |
| first_indexed | 2024-03-13T05:18:31Z |
| format | Article |
| id | doaj.art-bcc708b9a049400aa03a24d7e47e0a89 |
| institution | Directory Open Access Journal |
| issn | 1735-6768 2980-7832 |
| language | fas |
| last_indexed | 2024-03-13T05:18:31Z |
| publishDate | 2020-09-01 |
| publisher | Tarbiat Modares University |
| record_format | Article |
| series | پژوهشهای اقتصادی |
| spelling | doaj.art-bcc708b9a049400aa03a24d7e47e0a892023-06-15T20:24:45ZfasTarbiat Modares Universityپژوهشهای اقتصادی1735-67682980-78322020-09-012035777Analyzing the Different Effects of Endogenous and Exogenous Money Supply on Inflation: A Spectral Analysis Approachalireza kamalian0Zahra Zamani1mohammad Amirali2mostafa mobini dehkordi3 PHD student of faculity of administrative and economics in Esfahan university Postdoctoral researcher of Esfahan university PHD student of faculity of administrative and economics in Esfahan university PHD student of faculity of administrative and economics in Esfahan university In recent decades, the inflation phenomenon has been one of the most important issues for Iranian economy. Regardless of its effects on economy, identifying the determinants of inflation has always been a challenge in all economies. Therefore, in order to compare the endogenous money theory with the quantity theory of money, this study analyzes the relationship between inflation and its determinants. To this end, the spectral analysis approach at high and low frequencies is applied during the period 1991: Q1 to 2018: Q1. The results show that there is the causality relationship from the growth of liquidity towards inflation as well as from inflation to liquidity in the short- term and long-term. In addition, there is the causality relationship from the monetary base growth to inflation in the long-term, while this causal relationship runs from monetary base growth towards inflation in the short-term. Moreover, the causality relationship from money multiplier growth to inflation is confirmed in the long-term. Consequently, the causes of inflation are different in the short- and long-term.http://ecor.modares.ac.ir/article-18-37417-en.pdfinflationendogenous moneymonetary baseliquidityspectral causality |
| spellingShingle | alireza kamalian Zahra Zamani mohammad Amirali mostafa mobini dehkordi Analyzing the Different Effects of Endogenous and Exogenous Money Supply on Inflation: A Spectral Analysis Approach پژوهشهای اقتصادی inflation endogenous money monetary base liquidity spectral causality |
| title | Analyzing the Different Effects of Endogenous and Exogenous Money Supply on Inflation: A Spectral Analysis Approach |
| title_full | Analyzing the Different Effects of Endogenous and Exogenous Money Supply on Inflation: A Spectral Analysis Approach |
| title_fullStr | Analyzing the Different Effects of Endogenous and Exogenous Money Supply on Inflation: A Spectral Analysis Approach |
| title_full_unstemmed | Analyzing the Different Effects of Endogenous and Exogenous Money Supply on Inflation: A Spectral Analysis Approach |
| title_short | Analyzing the Different Effects of Endogenous and Exogenous Money Supply on Inflation: A Spectral Analysis Approach |
| title_sort | analyzing the different effects of endogenous and exogenous money supply on inflation a spectral analysis approach |
| topic | inflation endogenous money monetary base liquidity spectral causality |
| url | http://ecor.modares.ac.ir/article-18-37417-en.pdf |
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