The Game of Monetary Policy, Inflation and Economic Growth

Wauk, Gladys; Adjorlolo, Gideon

doi:10.4236/jss.2019.73022

Cited by 4 publications

(4 citation statements)

References 22 publications

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“…Economist Robert Lucas also developed the idea of the final determination of the relationship of the factors under consideration. He has already changed some methodological approaches, and began to study inflation expectations in the economy, as a result of which he came to the conclusion of a sufficiently high explanatory power of the Phillips model in the short term, but the need for significant refinement and customization for the purpose of the study when trying to apply it over a long period of time [88][89][90][91].…”

Section: Discussionmentioning

confidence: 99%

Non-Classical Approach to Identifying Groups of Countries Based on Open Innovation Indicators

Baboshkin

Yegina

Zemskova

et al. 2021

Journal of Open Innovation: Technology, Market, and Complexity

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This article aims to highlight various methods and approaches to grouping countries, according to the behavior of their open innovation indicators. GDP, inflation and unemployment are the most important indicators of the economic and social policies of states, allowing them to be evaluated and models built. To find the relationships between open innovation indicators the paper uses marginal analysis and feature reduction, as well as machine learning methods (shift to the mean, agglomerative clustering and random forest methods). The results showed that, after isolating all groups, the importance of the signs was established and the patterns of behavior of indicators for each group were compared and open innovation dynamics was analyzed. The conclusions showed that it is obvious that increasing the number of variables in the model and using more extensive indicators can greatly increase the accuracy, in contrast to the generally accepted simple classifications. This approach makes it possible to more accurately find the connections between sectors of the economy or between state economies in general. An accompanying result of the study was the clarification of the equality of open innovation indicators for the analysis of their interrelationships between countries.

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Section: Discussionmentioning

confidence: 99%

Non-Classical Approach to Identifying Groups of Countries Based on Open Innovation Indicators

Baboshkin

Yegina

Zemskova

et al. 2021

Journal of Open Innovation: Technology, Market, and Complexity

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“…Wauk and Ajorlolo [15] investigated the games of monetary policy, inflation and economic growth of the Ghanaian economy for the period of 1982 to 2017 using ARDL to cointegration model. The study revealed a significant negative relationship between interest rate and economic growth, and insignificant relationship between economic growth and exchange rate.…”

Section: Brief Literature On the Dynamic Interrelationships Among Inf...mentioning

confidence: 99%

Dynamics of Inflation, Interest and Exchange Rates with the Effects of Money Supply and GDP in Nigeria: Evidence from BVARX Models

Adenomon

Oduwole²

2022

AJPAS

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Economic theory revealed evidence of interrelationships among inflation, interest and exchange rates. Such theory further states possible effects of money supply and GDP on inflation, interest and exchange rates. This study focuses on the dynamic interrelationships among inflation, interest and exchange rates with the effects of money supply and GDP in Nigeria using Bayesian Vector Autoregression with Exogenous variables (BVARX) models. To achieve this, data was sourced from the Central bank of Nigeria (CBN) website spanning the period of 2010Q1-2020Q4. The study proposed six (6) versions of BVARX models with lag 2 using Normal-Wishart, Normal Flat and Flat-Flat priors. The results revealed superior BVARX models with Flat-Flat prior using Root Mean Square Error (RMSE) and Mean Absolute Error (MAE) as means of model selection. Lastly, evidence from Bivariate Granger causality testing reveals that the past lag values of inflation rate help in predicting exchange rate in Nigeria.

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“…A case study in China by Wank and Adjorlolo (2019) revealed that long run interest rate significantly influences economic growth both in the negative and positive direction. This implies that higher interest rate has the tendency to restrict economic growth and inflationary pressure.…”

Section: Literature Reviewmentioning

confidence: 99%

“…They recommended that the Bank of Ghana should be autonomous and the state should not interfere in its functions. Therefore, the macro economic variables that affects economic growth is interest rate and the exchange rate (Wank and Adjorlolo, 2019).…”

Section: Literature Reviewmentioning

confidence: 99%

Is There a Causal Relationship between Money Supply and the Inflation Rate? Thoughts from the Gambia

Ceesay¹,

Njie²

2021

theijbm

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Inflation is a monetary problem in every economy, and as in most of the developing economies, the nature of inflation in the Gambia is not an exception. In most economies, especially the developing economies, if the growth rate of money supply is more than the demand for money, there is high possibility that there will be some significant increase in the prices of goods and services during that particular period. During periods of inflation, some governments use different measures to get rid of the inflation in the economy. In the US, for instance, during the 2008 financial crisis, the prices of goods and services, including wheat increased significantly (Keatinge, 2015). The monetarists were able to assess the causes of the crisis; which were down to the supply shocks in the economy, higher demand for food items, increase in the supply of money, increase in the prices of Hard Red wheat, and a huge change in the climate and natural resources (ibid).Economists, however distinguish between two types of inflation: Demand-Pull Inflation and Cost-Push Inflation 1 . Both types of inflation cause an increase in the overall prices of goods and services within an economy.Demand-pull inflation occurs when aggregate demand for goods and services in an economy rises more rapidly than an economy's productive capacity. One potential shock to aggregate demand might come from a country's central bank that rapidly increases the supply of money.On the other hand, cost-push inflation, occurs when prices of production inputs increase. Rapid wage increases or rising raw material prices are common causes of this type of inflation. The sharp rise in the price of imported oil following the OPEC oil embargo in the 1970s, when inflation-adjusted oil prices went up from $25.97 per barrel in 1973 to $46.35 per barrel in 1974, is a classic example of cost-push inflation 2 .

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The Game of Monetary Policy, Inflation and Economic Growth

Cited by 4 publications

References 22 publications

Non-Classical Approach to Identifying Groups of Countries Based on Open Innovation Indicators

Non-Classical Approach to Identifying Groups of Countries Based on Open Innovation Indicators

Dynamics of Inflation, Interest and Exchange Rates with the Effects of Money Supply and GDP in Nigeria: Evidence from BVARX Models

Is There a Causal Relationship between Money Supply and the Inflation Rate? Thoughts from the Gambia

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