Inflation and Inflation Uncertainty in the Jordan Evidence from GARCH Modeling

Izz Eddien N. Ananzeh, Qasim M. Jdaitawi, Badir M. Alwan

Abstract


Among the harmful effects of inflation, the negative consequences of inflation volatility are of particular concern. These include higher risk premia, hedging costs and unforeseen redistribution of wealth, so that our study came to examines the relationship between Inflation and Inflation uncertainty for one of emerging country; Jordan by using monthly data from 1976:1 to 2013:12.
The maximum likelihood estimates from the GARCH model indicate strong support for the presence of a positive relationship between the level of inflation and its uncertainty. The Granger causality results report a feedback between inflation and uncertainty. With Granger causality running both ways, the Friedman-Ball and Cukierman-Meltzer hypotheses hold simultaneously in Jordan.
The results of this study may be useful for policymakers at central bank to devise more efficient monetary policy.

Key words: GARCH; Inflation; Inflation volatility

Keywords


GARCH; Inflation; Inflation volatility

Full Text:

PDF


DOI: http://dx.doi.org/10.3968/j.ibm.1923842820130801.1110

Refbacks

  • There are currently no refbacks.



Share us to:   


Reminder

  • How to do online submission to another Journal?
  • If you have already registered in Journal A, then how can you submit another article to Journal B? It takes two steps to make it happen:

1. Register yourself in Journal B as an Author

  • Find the journal you want to submit to in CATEGORIES, click on “VIEW JOURNAL”, “Online Submissions”, “GO TO LOGIN” and “Edit My Profile”. Check “Author” on the “Edit Profile” page, then “Save”.

2. Submission

  • Go to “User Home”, and click on “Author” under the name of Journal B. You may start a New Submission by clicking on “CLICK HERE”.


We only use three mailboxes as follows to deal with issues about paper acceptance, payment and submission of electronic versions of our journals to databases: caooc@hotmail.com; ibm@cscanada.net; ibm@cscanada.org

 Articles published in International Business and Management are licensed under Creative Commons Attribution 4.0 (CC-BY).

 INTERNATIONAL BUSINESS AND MANAGEMENT Editorial office

Address: 9375 Rue de Roissy Brossard, Québec, J4X 3A1, Canada 
Telephone: 1-514-558 6138 
Website: Http://www.cscanada.net Http://www.cscanada.org 
E-mailcaooc@hotmail.com

Copyright © 2010 Canadian Research & Development Centre of Sciences and Cultures