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Estimating the Threshold Level of Inflation for Thailand

Komain Jiranyakul ()

Journal of Economics Bibliography, 2017, vol. 4, issue 2, 150-155

Abstract: This paper analyzes the relationship between inflation and economic growth in Thailand using annual dataset during 1990 and 2015. The threshold model is estimated for different levels of threshold inflation rate. The results suggest that the threshold level of inflation above which inflation significantly slow growth is estimated at 3 percent. The negative relationship between inflation and growth is apparent above this threshold level of inflation. In other words, the inflation rate that is higher than this threshold level can jeopardize the growth rate of the country.

Keywords: Inflation; Growth; Threshold model. (search for similar items in EconPapers)
JEL-codes: C13 E31 (search for similar items in EconPapers)
Date: 2017
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Handle: RePEc:ksp:journ6:v:4:y:2017:i:2:p:150-155