Inflation as a Polynomial Function of Production Gap

• Authors: Grzeda-Latocha R.
• Languages of publication: PL

Abstracts

EN

It is attempted to verify a hypothesis that inflation is a concave-convex function of production gap. A sample of statistics from 12 economies of the Euro zone provided the basis of the study. The values of estimated parameters of base inflation function suggest that under condition of a positive production gap, inflation rate increases at accelerated pace while it fastly decreases during low industrial cycle. The study supports a guess that on average industrial capacities were utilized at a level of ca 81 %. The effective output (defined here as the volume of products sold during a medium term on condition that inflation increases are zero) could have been attained if capacities were utilized at the level of some 84 %.

Keywords

EN

CAPACITY UTILIZATION; INFLATION'S MODEL; OUTPUT GAP

Discipline

• ECONOMICS: ECONOMICS

• Publisher: Komitet Nauk Ekonomicznych PAN, Polskie Towarzystwo Ekonomiczne
• Journal: Ekonomista
• Year: 2007
• Issue: 2
• Pages: 161-180
• Document type: ARTICLE

Contributors

author

Grzeda-Latocha R.

• R. Grzeda-Latocha, c/o Uniwersytet Lódzki, Katedra Ekonometrii, ul. Rewolucji 1905r. 41, 90-214 Lódz, Poland

Identifiers

CEJSH db identifier

07PLAAAA02755626