IDEAS home Printed from https://ideas.repec.org/a/eut/journl/v10y2006i3p1.html
   My bibliography  Save this article

The Relation Between Inflation and Inflation Uncertainty In Iran

Author

Listed:
  • Mahdiyeh Entezarkheir

    (P.h.D Candidate for Economics, University of Waterloo, Waterloo, Canada)

Abstract

Decreasing inflation uncertainty, as the major source of welfare costs, requires finding the driving factors of this variable. Counting inflation as one of the driving factors of inflation uncertainty has created some concern due to the ambiguity over the causality between inflation and inflation uncertainty. This ambiguity has inspired several studies in the literature, which mostly focuses on testing two separate hypotheses to solve this ambiguity. These hypotheses are Friedman-Ball hypothesis, which assumes higher inflation leads to higher inflation uncertainty, and Cukierman-Meltzer hypothesis, which claims the reverse. After testing for Friedman-Ball and Cukierman-Meltzer hypotheses in Iranian economy, with applying TGARCH and EGARCH models, this study reveals that EGARCH model supports the asymmetry in error terms distribution of Iranian data and accepts both hypotheses. However, results based on TGARCH approach do not support the asymmetry in error terms distribution, which implies TGARCH model is not reliable for Iranian data.

Suggested Citation

  • Mahdiyeh Entezarkheir, 2006. "The Relation Between Inflation and Inflation Uncertainty In Iran," Iranian Economic Review (IER), Faculty of Economics,University of Tehran.Tehran,Iran, vol. 10(3), pages 1-20, fall.
    • Handle: RePEc:eut:journl:v:10:y:2006:i:3:p:1
    as

    Download full text from publisher

    File URL: ftp://80.66.179.253/eut/20063-1.pdf
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mendy, David & Widodo, Tri, 2018. "On the Inflation-Uncertainty Hypothesis in The Gambia: A Multi-Sample View on Causality Linkages," MPRA Paper 86743, University Library of Munich, Germany.
    2. Chevaughn van der Westhuizen & Renee van Eyden & Goodness C. Aye, 2022. "Is Inflation Uncertainty a Self-Fulfilling Prophecy? The Inflation-Inflation Uncertainty Nexus and Inflation Targeting in South Africa," Working Papers 202254, University of Pretoria, Department of Economics.
    3. B. Balaji & S. Raja Sethu Durai & M. Ramachandran, 2016. "The Dynamics Between Inflation and Inflation Uncertainty: Evidence from India," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 14(1), pages 1-14, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eut:journl:v:10:y:2006:i:3:p:1. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: [z.rahimalipour] (email available below). General contact details of provider: https://edirc.repec.org/data/fecutir.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.