Revisiting the growth-inflation nexus: a wavelet analysis
AbstractMotivated by the concern that the recent surge in inflation could retard growth, the paper revisits the nexus between inflation and growth from the perspective of an emerging economy, India. Examining this relationship using a wavelet multi resolution analysis with varying time scale decomposition suggests a strong and persistent negative relationship between growth and inflation for a short time scale, while it is not significant for a longer time scale.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 38001.
Date of creation: 10 Apr 2012
Date of revision:
Inflation Growth Wavelet;
Other versions of this item:
- Saumitra N Bhaduri, 2013. "Revisiting the Growth-Inflation Nexus: A Wavelet Analysis," Working Papers 2013-077, Madras School of Economics,Chennai,India.
- E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-04-17 (All new papers)
- NEP-FDG-2012-04-17 (Financial Development & Growth)
- NEP-MAC-2012-04-17 (Macroeconomics)
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