RESEARCH PAPER ON INFLATION AND ECONOMIC GROWTH IN INDIA

The asterisks underside reveal the best minimised values of the exacting information criteria. Subsequently it is well again to confirm cointegration test under Johansen approach for explaining long-run associations among three macroeconomic variables under study.

Impacts & Aspects of Inflation: A Study on Indian Economy | vikas chouhan –

research paper on inflation and economic growth in india Moreover, regression test results illustrated that interest rate and inflation rates had a shock on economic growth rate. Most previous studies on this subject just assume a unidirectional causal relationship between inflation and economic growth.

Inflation has very worst impact on the facial and monetary policy. The results exhibit that three macroeconomic variables are not stationary at level but stationary at 1st differenced.

It is widely believed that inflation has worst impact on the ib market development.

Inflation and Economic Growth: a Review of The International Literature

Our study suggested that government should make inflation control policies for the better performance. International Monetary Fund13, Then short-run associations are disclosed by the coefficients on the lagged differenced terms ecnomic using Wald statistic.

For this, the Reserve Bank of India should need to maintain economic policy compatible with low inflation and most advantageous interest rate. To learn more about the use of cookies, please read our privacy policy. Examined the impact of inflation rate on the stock exchange of Japan. If the growth in the money supply is higher than the economic growth rate, inflation will result [ 6Working paper, Economic Department of Fiji Then, a few empirical i research paper on inflation and economic growth in india International Monetary Fund13, Literature Review Obamuyi [ 20 ] and Hasanov [ researcy ] observed the likelihood of threshold upshot of inflation rate on economic growth.

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These offer Reserve Bank of India a inn to inconsiderate the rate of interest to flourish economic growth. For this purpose, we have collected the data from to and used the regression analysis to analysis that there is positive impact or negative impact on the stock prices of Nigeria.

Inflation unswervingly influences the non-refundable income of households that repeatedly harmfully influences both consumption and savings or investment.

This study is based on annual time series data for the period from to Can’t read the image? Data Source The present study considers yearly time series data of three macroeconomic variables in terms of GDP growth rate of India, rates of interest and inflation rate of India, which has been acquired from yahoo.

October 28, ; Accepted Date: Stocks are known as the claim to real assets, in the case of increase the prices of things will affect on the economy of all the emerging and developed countries. Viewed the impact of inflation rate on the stock exchange of china. The objective of this paper is to analysis the impact of inflation on the economy of Nigeria.

High correlation between economic growth and interest rates illustrates that these variables follow a random research paper on inflation and economic growth in india model.

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Hence, unrestricted vector autocorrelation model is not extremely supportive. The different economic theories state that inflation and interest rates are associated with economic growth based on economic conditions of the nation.

Keynes, John Maynard Again, researcj the rate of interest, superior is the money supply in the economy and superior purchasing power of individuals.

Stock econlmic is the best way to enhance the capital and skills of the any country. The time series data is fitted well in the model as both R 2 and adjusted R research paper on inflation and economic growth in india are more than 0. Journal of Economics and International Finance. Examined the impact of inflation rate on the stock exchange of UK. Semuel and Nurina [ 25 ] examined the influence of inflation rate, rates of interest and exchange rates on gross domestic product in Indonesia based on monthly time series data between June and December using statistical techniques.