Inflation, expectations and growth in real money in the United States

Ya Yin, David Thomas

    Research output: Working paper

    107 Downloads (Pure)

    Abstract

    This paper aims to explain the change in the rate of inflation within the United States economy by following a new Classical–Keynesian synthesis view and by incorporating private inflation expectations directly into the inflation determination process. A parsimonious unrestricted VAR approach is adopted to expose the long-run solution that is subsequently included in an error-correction model with the short-run dynamics. The empirical results reveal the full efficiency in private inflation expectations formation and support for the Classical Quantity Theory mechanism of inflation determination in the long run.
    Original languageEnglish
    PublisherUniversity of Hertfordshire
    Publication statusPublished - 2011

    Publication series

    NameBusiness School Working Papers
    PublisherUniversity of Hertfordshire

    Fingerprint

    Dive into the research topics of 'Inflation, expectations and growth in real money in the United States'. Together they form a unique fingerprint.

    Cite this