A Note on Excess Money Growth and Inflation Dynamics: Evidence from Threshold Regression
Published By: Madras School of Economics | Published Date: February, 01 , 2013We 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.
Author(s): Saumitra N Bhaduri, S. Raja Sethu Durai | Posted on: Mar 13, 2016 | Views() | Download (164)