A note on excess money growth and inflation dynamics: evidence from threshold regression

Saumitra Bhaduri and Sethudurai Raja

MPRA Paper from University Library of Munich, Germany

Abstract: We test the effect of excess money growth on inflation using Threshold Regression technique developed by Hansen (2000). The empirical test is conducted using annual data from India for the period from 1953-54 to 2007-08. The results clearly exhibits that the relationship is not linear and without a strong credit growth, excess money growth has lesser inflationary effects.

Keywords: Excess Money Growth; Quantity Theory of Money; Inflation and Threshold Regression (search for similar items in EconPapers)
JEL-codes: E51 (search for similar items in EconPapers)
Date: 2012-04-11
New Economics Papers: this item is included in nep-fdg, nep-mac and nep-mon
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Citations: View citations in EconPapers (15)

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Related works:
Working Paper: A Note on Excess Money Growth and Inflation Dynamics: Evidence from Threshold Regression (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:38036

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