Empirical Study of Relationship between Money Supply and Inflation Based on Data from New Standardised Reporting Format

Sinah, Satrugan

doi:10.5539/ijef.v10n1p213

Cited by 6 publications

(5 citation statements)

References 5 publications

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“…Besides this 1 % upsurge in value of LNMS (-1) causes to the increase lagged value of LNINF by 1.256525 percent. These outcomes are similar to Sinah (2018). The relative impact of natural log of lagged value of money supply is found to be more than relative contribution of lagged values of LNUN, LNIMP, LNGDPPC and LNIR respectively in long-run in Pakistan.…”

Section: Results Of Studysupporting

confidence: 63%

“…This study uses log of interest rate as an explanatory variable and same variable has been used in former researches by Felipe (2009), Aslam and Munir (2006) . Money supply (LNMS): This study uses log of money supply as an explanatory variable and same variable has been used in former researches by Han and Sinah (2018), Sinah (2018).…”

Section: Interest Rate (Lnir)mentioning

confidence: 99%

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Inflation Determinants and Policy Measures: Empirical Analysis for Pakistan

Sherazi

Rehman

Khan³

2022

GUJR

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Appropriate economic choices are very much dependent on stability of prices. It will bring certainty regarding purchasing power of the money. This research uses Johenson cointegration approach covering time duration from 1980 to 2018. The empirical estimates of this study shows that in long run all explanatory variables (unemployment, government consumption expenditures, unit price of imports, interest rate and money supply) have momentous influence in accelerating inflation in Pakistan. The findings show that decrease in unemployment and increase in unit value of imports will enhance inflation in long run. Due to the decrease in the government consumption expenditure there will be low investment, low production, and increased aggregate demand associated with high inflation. There exists positive relation between interest rate and inflation. The increase in money supply enhances inflation. Lagged value of error correction model is significant having appropriate sign. Furthermore, this study uses Granger Causality test to check the existence of uni or bi directional relationship among highlighted variables.

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Section: Results Of Studysupporting

confidence: 63%

Section: Interest Rate (Lnir)mentioning

confidence: 99%

Inflation Determinants and Policy Measures: Empirical Analysis for Pakistan

Sherazi

Rehman

Khan³

2022

GUJR

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“…The money supply is defined differently in different countries. The reason for this is that the total money supply is determined by the money creation of each country Sinah (2017).…”

Section: Inflation and Broad Money (M3)mentioning

confidence: 99%

Analysis of the Effect of Currency Exchange Rate, Broad Money (M3) and Oil Prices on Inflation in India

Sharma

Dahiya

2023

IJEFI

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The main goal of any government is to keep the inflation rate low and generally constant. However, the economy is threatened by unbridled inflation. Therefore, it is important to understand the factors that affect inflation rates. Information on consumer price index, inflation rate, exchange rate and money supply has been collected from secondary data sources for India. Vector autocorrelation model (VECM) is used for data analysis. In addition, Lagrange multiplier test and Jarque-Bera test were used to determine whether the relationships of the variables are normal. The results showed a short run relationship between inflation and exchange rates. In the long run, there is a poor relationship between the two. Due to the absence of one of the criteria, the VECM cannot demonstrate long-run causality between the two circumstances. The results show that none of the lagged values of broad money are interesting.

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“…M1 is categorized as narrow money and quasi money (Sinah, 2018). M1 includes circulation coins and notes and other cash equivalents that can be easily converted into cash but not as suitable as exchange mediums.…”

Section: Money Supply (M2)mentioning

confidence: 99%

“…M1 and M2 are closely related. However, an increase in money supply is an acceptable but significant increase in the money supply would indicate that other economic problems and issues such as inflation and interest rates are emerging (Sinah, 2018).…”

Section: Money Supply (M2)mentioning

confidence: 99%

The Unrestricted Macroeconomic Variables Effect on Stock Market Malaysia

Nam

Geetha

2020

MJBE

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This paper to study the selected macroeconomic variables effect on Malaysia stock market. From the 60 monthly data observations, the effect of unrestricted variables on results in the stock market has been applied by several empirical tests in this paper. From the empirical test, gross domestic product and consumer price index have negative bond results in Malaysia, while money supply, actual effective exchange rate, and industrial index of production have the positive relationship with the stock market performance in Malaysia. The unit-root test results showed that all variables except for the price index of the market are not fixed at a stage, while all variables except money supply are stationary at first. Lastly, the Granger Causality Test and Johansen Co-integration Test have been carried out in discovering short-run and long-run relationship between the variables.

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Empirical Study of Relationship between Money Supply and Inflation Based on Data from New Standardised Reporting Format

Cited by 6 publications

References 5 publications

Inflation Determinants and Policy Measures: Empirical Analysis for Pakistan

Inflation Determinants and Policy Measures: Empirical Analysis for Pakistan

Analysis of the Effect of Currency Exchange Rate, Broad Money (M3) and Oil Prices on Inflation in India

The Unrestricted Macroeconomic Variables Effect on Stock Market Malaysia

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