Inflation and Output Growth Uncertainty and their Relationship with Inflation and Output Growth
Using a bivariate GARCH model of inflation and output growth we find evidence that higher inflation and more inflation uncertainty lead to lower output growth in the Japanese economy. These results support the argument of a price stability objective for the monetary authority.
|Date of creation:||2001|
|Date of revision:||2001|
|Publication status:||Published in Economics Letters, 2002, vol. 75/3, pp. 293-301.|
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