Is There A Case For Low Inflation-Induced Productivity Growth In Selected Asian Economies?
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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Volume (Year): 24 (2006)
Issue (Month): 2 (04)
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