Inflation leads to higher uncertainty, contradicting popular economic theories.
The study looked at how inflation and inflation uncertainty are related in the Turkish economy. They found that when inflation goes up, uncertainty about inflation also increases. This supports the idea that inflation causes uncertainty, as suggested by Friedman and Ball. However, they did not find evidence that uncertainty about inflation leads to higher inflation, as proposed by Cukierman and Meltzer. In fact, they found that higher uncertainty about inflation is linked to lower levels of inflation.