The Determinants of Price Inflation in the United States: A Multivariate Dynamic Cointegration and Causal Analysis

Hossain, Md. Sharif; Mitra, Rajarshi

doi:10.1353/jda.2017.0009

Cited by 5 publications

(5 citation statements)

References 27 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…However, Mishkin (1992), Ghazali andRamlee (2003), andChu et al' (2017) studies indicate that an additional decrease in the interest rate reduces the inflation rate. The viewpoint of a positive relationship between interest rates and inflation is also supported by Hossain and Mitra (2017), who claimed that a rise in the long-term interest rates on the US government bonds may escalate inflation due to increases in capital inflows. In short, we hypothesise that there is a significant relationship between interest rates and inflation.…”

Section: Literature Reviewmentioning

confidence: 91%

“…A large number of studies have also tested the relationship between trade openness (TR) and inflation (Cottarelli et al, 1998;Bowdler, 2003;Evans, 2007;Rajagopal, 2007;Hossain and Mitra, 2017;Agoba et al, 2017;and others). These studies have found that TR plays a major role in increasing the level of inflation in both developed and developing countries.…”

Section: Literature Reviewmentioning

confidence: 99%

“…( 10) as a baseline specification. Whilst the specification was based on the synthesis between inflation and FIN, TR (Hossain and Mitra, 2017) has also been considered in this model.…”

Section: Degrees Of Financial Depthmentioning

confidence: 99%

“…A large number of studies have also tested the relationship between trade openness (TR) and inflation (Cottarelli et al. , 1998; Bowdler, 2003; Evans, 2007; Rajagopal, 2007; Hossain and Mitra, 2017; Agoba et al. , 2017; and others).…”

Section: Literature Reviewmentioning

confidence: 99%

See 3 more Smart Citations

Does excessive degrees of financial depth push hyper-inflation?

Subramaniam

Masron²

2022

AJEB

View full text Add to dashboard Cite

PurposeUsing an innovative threshold estimation technique, this paper provides new evidence on the relationship between finance and inflation with distinct levels of finance.Design/methodology/approachThe sample consisted of 10 high inflation countries using time series data for the period of 1992–2020. These 10 countries recorded the world's highest inflation rates in 2017.FindingsThe findings demonstrate that there is a threshold effect on the finance–inflation relationship. Whilst the effects of finance are consistently positive for below and above the threshold models, financial depth above the threshold tends to aggravate the inflation level.Practical implicationsThese results disclose that financial depth could be the cause of high inflation in the top 10 countries and thus, is not necessarily welcome as too rapid of a price increase may in turn reverse the prospect of economic growth. Searching and strategizing for the optimal level of financing is crucial in facilitating price stability and economic growth.Originality/valueThe authors believe that the effect of financial depth on inflation is characterised by being desirable to certain extent and undesirable if over-financing is beyond the optimum level. Therefore, in this study, the authors have introduced the threshold modelling as the potential strategy to connect financial depth and inflation.

show abstract

Section: Literature Reviewmentioning

confidence: 91%

Section: Literature Reviewmentioning

confidence: 99%

“…( 10) as a baseline specification. Whilst the specification was based on the synthesis between inflation and FIN, TR (Hossain and Mitra, 2017) has also been considered in this model.…”

Section: Degrees Of Financial Depthmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

See 2 more Smart Citations

Does excessive degrees of financial depth push hyper-inflation?

Subramaniam

Masron²

2022

AJEB

View full text Add to dashboard Cite

show abstract

“…Additionally, they observe that the energy price has a substantial long term effect on US food prices but its effect is minimal in the short run. Lastly, Hossain and Mitra (2017) examine the short and long term influences of various economic factors on the US inflation rate from 1978 to 2014 by employing Granger F-test on the vector error correction model. Their findings show short run unidirectional causalities from certain factors.…”

Section: Literature Reviewmentioning

confidence: 99%

Investigating Factors Influencing Inflation in the USA

COSKUN YILMAZ

2023

Ekinoks

View full text Add to dashboard Cite

The determination of inflation has been extensively explored in economic literature and it remains an ongoing and developing field of study. Researchers have examined diverse econometric methodologies and analyzed data from varying time spans to identify the factors influencing inflation. In this research paper, we explore the factors influencing inflation in the USA by utilizing the monthly data from 2002 to 2020. To achieve our aim, we employ error correction model (ECM) and then granger causality method. The findings indicate that certain lagged changes in inflation, consumer price index (CPI) for fuel and utilities, CPI all city average and production price index play a significant role in accounting for the variations in inflation in the USA but the lagged changes in money supply are not a significant determinant in accounting for the fluctuations in inflation in the USA. Moreover, the results of causality analysis suggest that all factors have significant Granger causality on inflation, except money supply.

show abstract

Cointegration between the structure of copper futures prices and Brexit

Galán-Gutiérrez

García

2021

Resources Policy

View full text Add to dashboard Cite

The Determinants of Price Inflation in the United States: A Multivariate Dynamic Cointegration and Causal Analysis

Cited by 5 publications

References 27 publications

Does excessive degrees of financial depth push hyper-inflation?

Does excessive degrees of financial depth push hyper-inflation?

Investigating Factors Influencing Inflation in the USA

Cointegration between the structure of copper futures prices and Brexit

Contact Info

Product

Resources

About