Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/105920
Authors: 
Schreiber, Sven
Year of Publication: 
2009
Series/Report no.: 
IMK Working Paper 6/2009
Abstract: 
We use frequency-wise Granger-causality tests and error-correction models to investigate the driving forces behind longer-run inflation developments in the euro area. Employing an eclectic approach we consider various relevant theories. With a general-to-specific testing strategy we distill the unemployment rate and long-term interest rates as causal for low-frequency variations of inflation. Money growth is found to be causal for inflation only if other variables are omitted, which we therefore interpret as a spurious result.
Subjects: 
money growth
Granger causality
quantity theory
JEL: 
E31
E40
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.