There have been two broad theories of inflation, namely the demand-pull theory of inflation (that is nowadays mainly the monetary theory of inflation) and the cost-push theory of inflation. The mainstream macroeconomics views inflation as a monetary phenomenon in the long run. Iran has experienced double-digit rates of inflation for about four decades. Our main aim is an explanation for the lon...

The paper investigates the relationship between inflation and inflation uncertainty using the Iranian data over the period 1959:03 – 2008:02. GARCH models are used to examine this relationship. Granger methods are employed to provide statistical evidence for the relationship between average inflation and inflation uncertainty. Threshold GARCH (TGARCH) models are considered to investigate asymme...

This paper examines matched point and density forecasts of inflation from the Survey of Professional Forecasters to analyze the relationship between expected inflation, disagreement, and uncertainty. We extend previous studies through our data construction and estimation methodology. Specifically, we derive measures of disagreement and uncertainty by using a decomposition proposed in earlier re...

We investigate whether the financial system dampens or exacerbates monetary shocks of inflation uncertainty to the economy. Our GMM-estimates for 88 countries over a period of 25 years show that inflation uncertainty has a positive and significant impact on the volatility of economic growth. More importantly, we find that financial development dampens the negative effects of inflation uncertain...

Reply : We think that the Tunisian case is also interesting for a broad audience. Tunisia has made important progress over the last decade toward establishing a sound bank intermediation, deepening its financial market, mobilizing domestic financing, and using indirect market-based monetary policy instruments. Monetary policy is useful to obtain a stable macroeconomic environment in favor of a ...

The purpose of present paper was to examine the relationship between central bank independence and inflation rate in Iran over 1960-2008. First, central bank independence has been accomplished through three indices including legal and real CBI indices and turnover rate of central bank governor index. Then, Augmented Dickey-Fuller test for model stationary of variables has been done by applying ...