Economics at your fingertips  

Inflation and inflation uncertainty: The case of Cambodia, Lao PDR, and Vietnam

Bora Buth, Makoto Kakinaka and Hiroaki Miyamoto

Journal of Asian Economics, 2015, vol. 38, issue C, 31-43

Abstract: This paper studies the relationship between inflation and inflation uncertainty in Cambodia, Lao PDR, and Vietnam. Inflation uncertainty is estimated as the conditional variance in a family of generalized autoregressive heteroskedasticity (GARCH) models. This paper finds that inflation causes inflation uncertainty in these countries, which supports the argument of Friedman (1977). Moreover, the analysis demonstrates that inflation uncertainty causes inflation only in Lao PDR, which implies that Cukierman and Meltzer's (1986) argument can be supported in Lao PDR. This paper also investigates how inflation in the United States is related to inflation and inflation uncertainty in Indochina countries. The result shows that inflation positively responds to US inflation only in Cambodia.

Keywords: Inflation uncertainty; GARCH models; Indochina economies (search for similar items in EconPapers)
JEL-codes: C22 E31 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7) Track citations by RSS feed

Downloads: (external link)
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

DOI: 10.1016/j.asieco.2015.03.004

Access Statistics for this article

Journal of Asian Economics is currently edited by C. Wiemer

More articles in Journal of Asian Economics from Elsevier
Bibliographic data for series maintained by Haili He ().

Page updated 2020-07-27
Handle: RePEc:eee:asieco:v:38:y:2015:i:c:p:31-43