Journal Paper

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Journal: اقتصاد کاربردی
Year:1394 | Volume:5 | Issue:-
Start Page:11 | End Page:21

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Title

AN INVESTIGATION OF NONLINEAR CAUSALITY BETWEEN INFLATION AND INFLATION UNCERTAINTY IN IRAN

Pages

 Start Page 11 | End Page 21

Abstract

 The main goal of the present paper is to investigate the relationship between INFLATION and uncertainty, within the related theoretical foundations’ framework in Iran Economy during the years1959-2013 (1338-1392 corresponding to Iranian calendar). For this purpose, the CAUSALITY relationship between INFLATION and its uncertainty has been studied using the nonlinear Group Method of Data Handling (GMDH) algorithm. Findings show that there is a one-way nonlinear cause from INFLATION to INFLATION UNCERTAINTY in Iran Economy. In other words, INFLATION has a significant and a strong effect on INFLATION UNCERTAINTY.

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