Inflation and Economic Growth: A Dynamic Panel Threshold Analysis for Turkish Republics in Transition Process

Aydın, Celil; Esen, Ömer; Bayrak, Metin

doi:10.1016/j.sbspro.2016.07.129

Cited by 59 publications

(44 citation statements)

References 22 publications

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“…Indonesia's inflation rate was 9.77% in 2008 and it declined to 3.52 in 2016 and 3.13 in 2018. Therefor these finding constant with the results of Aydın, et al (2016) who observed that the inflation rate below 7.97% had a positive effect on output growth.…”

Section: Resultssupporting

confidence: 80%

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Analysis of The Relationship among Macroeconomics, Monetary and Income Inequality

Taresh

Sari

Purwono

2020

EDAJ

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Income inequality in Indonesia remains a controversial issue in the context of Indonesian macroeconomic condition that is evolving in output and government spending, and its increase in consumption accompanied by inflation and slowing of bank credit. The purpose of this study is to investigate the relationship among macroeconomics, monetary and income inequality through a broad theoretical model by adopting a panel Structural Vector Auto-regression (SVAR) model to get more sample size during the period 2005-2018 at 33 provinces in Indonesia. The main results indicate that the variables of output and inflation have positive relationships. The relationship between output and income inequality is also significantly correlated, and those results supported by Kuznets's theory reveal that the relationship between economic growth and income inequality is positive in the short term. The relationship between inflation and income inequality is positive as well in Indonesia. This result is by the fact that low-income families are considered more vulnerable to inflation. The impact of non-food consumption shocks increases income inequality, while Indonesian government spending and bank credit shocks reduce income inequality. Then the response of savings and bank credit to the shock of income inequality is positive.

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Section: Resultssupporting

confidence: 80%

“…From the other side inflation also stimulates production. Aydın, et al (2016) observed that the inflation rate below 7.97% had a positive effect on output growth for five Turkish republics. Then credit increases output because it increases investment.…”

Section: Introductionmentioning

confidence: 97%

Analysis of The Relationship among Macroeconomics, Monetary and Income Inequality

Taresh

Sari

Purwono

2020

EDAJ

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“…3 Tahun 2004, tujuan Bank Indonesia yang sebelumnya memiliki tujuan ganda (multiple target) yaitu pertumbuhan ekonomi, stabilitas harga dan perluasan kesempatan kerja, menjadi lebih fokus dalam pencapaian sasaran tunggal (single target) yaitu mencapai dan memelihara kestabilan rupiah. Sejak tahun 2000, Bank Indonesia sudah mulai menentukan dan mengumumkan sasaran inflasi sebagai sasaran akhir kebijakan, hanya saja bank 200520062007200820092011201220132014 (Aydın, 2016).…”

Section: Pendahuluanunclassified

Mekanisme Transmisi Kebijakan Moneter dalam Mempengaruhi Inflasi dan Pertumbuhan Ekonomi di Indonesia

Setiawan

Karsinah

2018

EDAJ

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Sejak dikeluarkannya UU Bank Indonesia yang baru tahun 1999, Bank Indonesia telah diberi amanah sebagai otoritas moneter ganda yang dapat menjalankan kebijakan moneter konvensional maupun syariah. Sejak saat itu perbankan dan keuangan syariah berkembang pesat.Penelitian ini bertujuan untuk melihat alur transmisi kebijakan moneter dari sisi konvensional dan syariah dalam mempengaruhi inflasi dan pertumbuhan ekonomi, yang kemudian membandingkan keduanya. Hasil penelitian menunjukkan jalur konvensional memiliki alur sesuai dengan teori transmisi kebijakan moneter yang ada hingga mempengaruhi inflasi dan pertumbuhan ekonomi, sedangkan jalur syariah belum mempunyai alur yang sesuai dengan teori kebijakan moneter yang ada. Berdasarkan hasil VECM variabel syariah dapat menurunkan laju inflasi dan meningkatkan pertumbuhan ekonomi, sedangkan variabel konvensional dapat menurunkan laju inflasi akan tetapi menahan laju pertumbuhan ekonomi. Kemudian berdasarkan hasil FEVD jalur konvensional lebih berpengaruh dalam mengendalikan pertumbuhan ekonomi dan inflasi dengan masing-masing kontribusi sebesar 50,5% dan 19,97%, sedangkan jalur syariah masing-masing sebesar 29,07%. dan 19,47%. Since New Banking Act in 1998, Indonesia has implemented a dual banking system, where conventional and Islamic banks can operate side by side throughout Indonesia. With the implementation of Bank of Indonesia’s Act in 1999, Bank of Indonesia has a dual mandate to conduct both conventional and Islamic monetary policies. Since then, the Islamic banking and finance has been growing rapidly. The aim of this study is to see how transmission channel of monetary policy from side of conventional and Sharia channel to Influence Inflation and Economic Growth compare them both. The results showed the conventional channel is worked according to the theory of transmission mechanism of monetary policy that affect the final target inflation and economic growth, whereas Sharia channel does not worked according to the monetary policy. Based on the results of VECM on Sharia channel variable can reduce the inflation and increase the economic growth at the same time, while the variable of conventional channel can reduce the inflation but also reduce the economic growth at the same time. Then based on the results of FEVD conventional channel is more effective in controlling the economic growth and the inflation with contribution of 50.5% and 19.97%. while the Islamic bank financing channel with contribution of 29.07% and 19.47%.

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“…Price stability is an important factor that determines the growth rate of an economy (Kryeziu and Durguti, 2019). A stable macroeconomic structure is the prerequisite for sustainable economic growth (Ayd et al, 2016). A sound economic structure, and thus, a sustainable economic growth performance largely depend on price stability (Bhattarai, 2018).…”

Section: Introductionmentioning

confidence: 99%

“…That is, high inflation rate hurts economic growth. In present context, an economy that achieves no or inadequate growth is always associated with important problems such as poverty, unemployment and low welfare (Ayd et al, 2016). It is necessary to determine inflation thresholds for each country in order to achieve sustainable economic growth (Omarova et al, 2020).…”

Section: Introductionmentioning

confidence: 99%

A review on impact of inflation on economic growth in Nepal

Karki

Banjara

Dumre

2020

Arch. Agric. Environ. Sci.

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This study shows that there is no consensus on the relationship between inflation and economic growth in economic literature. The answer to whether inflation is generally conducive or detrimental to economic growth is still inconclusive. Various arguments have been put forward on both sides. It is generally believed that a low and stable inflation rate helps economic activities, while high inflation hurts growth. The study finds overwhelming support in favor of the specific threshold level of inflation that is appropriate for growth in Nepal. Several studies on this subject have found the threshold value of inflation to be around 6 per cent for Nepal. Inflation is harmful to the economy after certain rate of threshold. Therefore, it is necessary to control inflation in order to address poverty as well as economic growth. Policies need to be put in place to keep inflation target range around the optimum inflation rate to accelerate the pace of economic growth rate and ensure that the negative effect inflation has on economic growth is minimized.

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Inflation and Economic Growth: A Dynamic Panel Threshold Analysis for Turkish Republics in Transition Process

Cited by 59 publications

References 22 publications

Analysis of The Relationship among Macroeconomics, Monetary and Income Inequality

Analysis of The Relationship among Macroeconomics, Monetary and Income Inequality

Mekanisme Transmisi Kebijakan Moneter dalam Mempengaruhi Inflasi dan Pertumbuhan Ekonomi di Indonesia

A review on impact of inflation on economic growth in Nepal

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