Economics, Econometrics and Finance
4 years ago

Inflation Rate Found to be Stable, Impacting Economic Stability.

1 view
RePEc: Research Papers in Economics
Is there Really a Unit Root in the Inflation Rate? More Evidence from Panel Data Models
Syed Abul Basher, Joakim Westerlund

Paper Summary

The study found that inflation rates are not constantly changing, despite previous beliefs. The researchers used advanced panel unit root tests to analyze the data and discovered that inflation is actually stable over time, even when considering factors like cross-sectional dependence and structural changes.

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