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Is There A Case For Low Inflation-Induced Productivity Growth In Selected Asian Economies?

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  • RENUKA MAHADEVAN
  • JOHN ASAFU-ADJAYE

Abstract

The authors examine the evidence on the relationship between inflation and productivity growth for nine Asian economies using causality analysis in a multivariate model with money supply as a possible effective monetary policy tool. The inflation-productivity growth relationship is found to be non-uniform, as the evidence of uni-directional, bi-directional, and no causality between the two variables is varied and significant for some countries and insignificant for others. An attempt is made to explain the inflation-productivity nexus for these countries and to discuss implications for anti-inflationary policies such as inflation targeting. "("JEL "E31, O47, C32)" Copyright 2006 Western Economic Association International.

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Bibliographic Info

Article provided by Western Economic Association International in its journal Contemporary Economic Policy.

Volume (Year): 24 (2006)
Issue (Month): 2 (04)
Pages: 249-261

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Handle: RePEc:bla:coecpo:v:24:y:2006:i:2:p:249-261

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Cited by:
  1. Saten Kumar & Don J. Webber & Geoff Perry, 2012. "Real wages, inflation and labour productivity in Australia," Applied Economics, Taylor & Francis Journals, Taylor & Francis Journals, vol. 44(23), pages 2945-2954, August.
  2. Nagayasu, Jun, 2009. "Regional Inflation in China," MPRA Paper 24722, University Library of Munich, Germany.

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