Granger causality

Granger Causality of the Inflation-Growth Mirror in Accession Countries

JEL codes: 
C22, E31, O42
Version Date: 
Dec 2004

The Paper presents a model in which the exogenous money supply causes changes in the inflation rate and the output growth rate. While inflation and growth rate changes occur simultaneously, the inflation acts as a tax on the return to human capital and in this sense induces the growth rate decrease.

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