Inflation and growth in Fiji: a study on threshold inflation rate

Jayaraman, T.K. and Chen, Hong and Bhatt, Markand (2013) Inflation and growth in Fiji: a study on threshold inflation rate. The Empirical Economics Letters, 12 (2). pp. 163-171. ISSN 1681-8997

PDF - Published Version Restricted to Repository staff only Download (255kB) | Request a copy

Abstract

Industrialized countries have been pursuing expansionary monetary policies since the onset of recession in 2008. Farhi (2012) suggests that the only way open to the US policy makers is to encourage inflation for promoting growth. In Fiji, the Reserve Bank keeps the benchmark rate at a historically lowest rate at 0.5 percent since October 2011. This raises the question of finding a threshold inflation rate up to which growth is positively influenced by inflation, and above which rise in inflation would negatively affect growth. This paper undertakes an empirical study of threshold inflation in Fiji.

Item Type:	Journal Article
Subjects:	H Social Sciences > HB Economic Theory
Divisions:	Faculty of Business and Economics (FBE) > School of Economics
Depositing User:	Hong Chen
Date Deposited:	01 Apr 2014 23:33
Last Modified:	20 Jun 2016 03:25
URI:	https://repository.usp.ac.fj/id/eprint/7345

Actions (login required)

View Item