The link between macroeconomic performance and variability in the UK

Christian Conrad, Menelaos Karanasos and Ning Zeng

Economics Letters, 2010, vol. 106, issue 3, 154-157

Abstract: This paper examines the link between inflation, output growth and their respective variabilities. We employ a bivariate GARCH model, which incorporates mean and level effects, to investigate in a unified empirical framework all the possible interactions between the four variables. We show that not only does variability affect performance but the latter influences the former as well. Specifically, inflation has a positive impact on both variabilities.

Keywords: Inflation; Macroeconomic; performance; Output; growth; Stochastic; volatility (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (17)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:106:y:2010:i:3:p:154-157

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