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Paradox of Inflation: The Study on Correlation between Money Supply and Inflation in New Era

Abstract Before 1990s, the relationship between money supply and inflation was positively correlated, however, from 1990 onwards, the US and other major developed countries entered into a new financial era with a typical belief that hyper money supply coexisted with lower inflation. This phenomenon is called “the paradox of inflation”. Traditional theories cannot provide reasonable explanations of this new phenomenon.

In my study, I have taken the linear filtering techniques which Lucas developed in 1980, and the recursive estimation method, as well as the chow test and F-test, and choose the data of the US, Britain, Japan, Germany, Euro area, BRICKs and some members of ASEAN, from 1960 to 2012, to study the relationship between annual rate of ... (more)
Created Date 2015
Contributor Cao, Tong (Author) / Prescott, Edward C (Advisor) / Liu, Jun (Advisor) / Chun, Chang (Committee member) / Arizona State University (Publisher)
Subject Business / Economics / GINI index / income per capita / money supply / paradox of inflation / relatively wealthy society / wealth allocation phenomenon
Type Doctoral Dissertation
Extent 88 pages
Language English
Reuse Permissions All Rights Reserved
Note Doctoral Dissertation Business Administration 2015
Collaborating Institutions Graduate College / ASU Library
Additional Formats MODS / OAI Dublin Core / RIS

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Description Dissertation/Thesis