Salahodjaev, Raufhon and Chepel, Sergey (2014): Institutional Quality and Inflation. Published in: Modern Economy (ME) , Vol. 5, No. 3 (2014): pp. 219-223.
Preview |
PDF
MPRA_paper_55272.pdf Download (227kB) | Preview |
Abstract
The purpose of this paper is to empirically analyze the effects of the quality of institutions on inflation. Using panel data from 1991 to 2007, we find that increase in institutional development which is measured by the ratio of domestic credit to private sector to GDP has significant and sizeable effect on inflation. This paper finds that in countries with high inflation rates, financial sectors cannot resist current levels of inflation and banking system does not decrease inflation in the environment where private banks and financial companies have adapted to existing monetary environment.
Item Type: | MPRA Paper |
---|---|
Original Title: | Institutional Quality and Inflation |
English Title: | Institutional Quality and Inflation |
Language: | English |
Keywords: | Inflation; Credit; Institutions; Quality |
Subjects: | E - Macroeconomics and Monetary Economics > E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit > E51 - Money Supply ; Credit ; Money Multipliers E - Macroeconomics and Monetary Economics > E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit > E52 - Monetary Policy |
Item ID: | 55272 |
Depositing User: | Raufhon F Salahodjaev |
Date Deposited: | 16 Apr 2014 03:38 |
Last Modified: | 28 Sep 2019 06:31 |
References: | Alchian, A. (1965) Some Economics of Property Rights. Il Polit, 30, 816-829. North, D. (1981) Structure and Change in Economic History. W.W. Norton, New York. Acemoglu, D., Johnson, S. and Robinson, J. (2005) Institutions as the Fundamental Cause of Long-Run Growth. In: Aghion, P. and Durlauf, S., Eds., Handbook of Economic Growth, Vol. 1A, North Holland, Amsterdam, 385-472. http://dx.doi.org/10.1016/S1574-0684(05)01006-3 Durham, J.B. (1999) Economic Growth and Political Regimes. Journal of Economic Growth, 4, 81-111. http://dx.doi.org/10.1023/A:1009830709488 Barro, R.J. (1991) Economic Growth in a Cross-Section of Countries. Quarterly Journal of Economics, 106, 407-443. http://dx.doi.org/10.2307/2937943 Barro, R.J. and Sala-i-Martin, X. (2004) Economic Growth. 2nd Edition, MIT, Cambridge. Torstensson, J. (1994) Property Rights and Economic Growth: An Empirical Study. Kyklos, 47, 231-427. http://dx.doi.org/10.1111/j.1467-6435.1994.tb02257.x Zijlstra, J. (1975) Inflation and Its Impact on Society. De Economist, 123, 495-506. http://dx.doi.org/10.1111/j.1467-6435.1994.tb02257.x Campillo M. and Miron, J. (1997) Why Does Inflation Differ across Countries? In: Reducing Inflation: Motivation and Strategy, University of Chicago Press, Chicago, 335-362. Romer, D. (1993) Openness and Inflation: Theory and Evidence. The Quarterly Journal of Economics, 108, 869-903. http://dx.doi.org/10.2307/2118453 Cukierman, A. (1992) Central Bank Strategy, Credibility, and Independence. MIT Press, Cambridge. Aisen, A. and Veiga, F. (2008) Political Instability and Inflation Volatility. Public Choice, 135, 207-223. http://dx.doi.org/10.1007/s11127-007-9254-x King, R.G. and Levine, R. (1993) Finance and Growth: Schumpeter Might Be Right. Quarterly Journal of Economics, 108, 717-737. http://dx.doi.org/10.2307/2118406 Levine, R. and Zervos, S.J. (1993) What Have We Learned about Policy and Growth from Cross Country Regressions? American Economic Review, 83, 426-430. Friedman, M. (1956) The Quantity Theory of Money—A Restatement. In: Friedman, M., Ed., Studies in the Quantity Theory of Money, University of Chicago Press, Chicago, 1-21. Alan, G. (2004) Risk and Uncertainty in Monetary Policy. The American Economic Review, 94; Proceedings of the One Hundred Sixteenth Annual Meeting of the American Economic Association, San Diego, 3-5 January 2004, 33-40. Lothian, J.R. (2009) Milton Friedman’s Monetary Economics and the Quantity-Theory Tradition. Journal of International Money and Finance, 23, 1086-1096. http://dx.doi.org/10.1016/j.jimonfin.2009.06.002 Kemal, M.A. (2006) Is Inflation in Pakistan a Monetary Phenomenon? The Pakistan Development Review, 45, 213- 220. Khan, M.S. (1980) The Dynamics of Money and Price and the Role of Monetary Policy in SEACAN Countries. SEACEN Occasional Paper. Gelos, G. and Ustyugova, Y. (2012) Inflation Responses to Commodity Price Shocks—How and Why Do Countries Differ? IMF Working Paper. Posen, A.S. (1995) Declarations Are Not Enough: Financial Sector Sources of Central Bank Independence. NBER Macroeconomics Annual, 10, 251-274. Reinhart, C.M. and Savastano, M.A. (2003) Las realidades de las hiperinflaciones modernas: Pese a que las tasas de inflación han bajado en el mundo entero, la hiperinflación no ha sido erradicada. Finanzas y desarrollo: Publicación trimestral del Fondo Monetario Internacional y del Banco Mundial, 40, 20. Aron, J. (2000) Growth and Institutions: A Review of the Evidence. World Bank Research Observer, 15, 99-135. http://dx.doi.org/10.1093/wbro/15.1.99 Samimi, A., Mahmoodzadeh, M. and Shadabi, L. (2011) Inflation & Economic Freedom: Evidence from MENA Region. Journal of Economics and Behavioral Studies, 2, 125-130. De Grauwe, P., Houssa, R. and Piccillo, G. (2012) African Trade Dynamics: Is China a Different Trading Partner? Journal of Chinese Economic and Business Studies, 10, 15-45. http://dx.doi.org/10.1080/14765284.2012.638460 Kaufmann, D., Kraay, A. and Mastruzzi, M. (2010) Governance Matters viii: Aggregate and Individual Governance Indicators 1996-2009. Policy Research Working Paper Series 4978, The World Bank. Grogan, L. and Moers, L. (2001) Growth Empirics with Institutional Measures for Transition Countries. Economic Systems, 25, 323-344. http://dx.doi.org/10.1016/S0939-3625(01)00030-9 Beck, T., Demirgüç-Kunt, A. and Levine, R. (2000) A New Database on Financial Development and Structure. World Bank Economic Review, 14, 597-605. http://dx.doi.org/10.1093/wber/14.3.597 Shan, J. (2005) Does Financial Development “Lead” Economic Growth?: A Vector Auto-Regression Appraisal. Applied Economics, 37, 1353-1367. http://dx.doi.org/10.1080/00036840500118762 Jonas, J. and Mishkin, F. (2004) Inflation Targeting in Transition Economies. The Inflation-Targeting Debate. University of Chicago Press, Chicago. Antzoulatos, A. (1996) Consumer Credit and Consumption Forecasts. International Journal of Forecasting, 12, 439- 453. http://dx.doi.org/10.1016/S0169-2070(96)00687-5 |
URI: | https://mpra.ub.uni-muenchen.de/id/eprint/55272 |