Analysis on Inflation Regression Model
Analysis on Inflation Regression Model
Done by: Hassan Kanaan & Fahim Melki
Presented to: Dr. Gretta Saab
Due on: Tuesday, January 25, 2011
Outline: I. Introduction A. Definition of Variables B. Type of Variables II. Background and Literature Review A. Inflation and Unemployment B. Inflation and Oil Prices C. Inflation and GDP D. Inflation and Money Supply III. Analysis A. SPSS 17 analysis B. E-Views 5 analysis IV. Conclusion and Recommendation V. Indexes A. SPSS17 results Enter and Stepwise (Index 1) B. E-Views 5 results Stationarity and Granger Causality (Index 2) C. Data Collection (Index 3)
The project that the group will be handling is about Inflation and how can these four variables affect it. The variables are GDP, Unemployment, Money Supply (M2), and Oil Prices.
First, a definition on Inflation; inflation is the overall general upward price movement of goods and services in an economy (often caused by an increase in the supply of money); usually as measured by the Consumer Price Index and the Producer Price Index. In the project the group will analyze how the above mentioned variables are going to affect inflation. (Investopedia)
An overview on why these variables where chosen and what are these variables. The first variable GDP (Gross Domestic Product), the total market value of all final goods and services produced in a country in a given year, equal to total consumer, investment and government spending, plus the value of exports, minus the value of imports. This is a definition of GDP, but what does it have to do with inflation. (Investopedia)
Unemployment is another aspect that could affect inflation. Unemployment is an economic condition marked by the fact that individuals actively seeking jobs remain un-hired. (Investopedia)
Money supply is the main indicator of how inflation is going to act. Money supply is the total supply of money in circulation in a given country's economy at a given
Done by: Hassan Kanaan & Fahim Melki
Presented to: Dr. Gretta Saab
Due on: Tuesday, January 25, 2011
Outline: I. Introduction A. Definition of Variables B. Type of Variables II. Background and Literature Review A. Inflation and Unemployment B. Inflation and Oil Prices C. Inflation and GDP D. Inflation and Money Supply III. Analysis A. SPSS 17 analysis B. E-Views 5 analysis IV. Conclusion and Recommendation V. Indexes A. SPSS17 results Enter and Stepwise (Index 1) B. E-Views 5 results Stationarity and Granger Causality (Index 2) C. Data Collection (Index 3)
The project that the group will be handling is about Inflation and how can these four variables affect it. The variables are GDP, Unemployment, Money Supply (M2), and Oil Prices.
First, a definition on Inflation; inflation is the overall general upward price movement of goods and services in an economy (often caused by an increase in the supply of money); usually as measured by the Consumer Price Index and the Producer Price Index. In the project the group will analyze how the above mentioned variables are going to affect inflation. (Investopedia)
An overview on why these variables where chosen and what are these variables. The first variable GDP (Gross Domestic Product), the total market value of all final goods and services produced in a country in a given year, equal to total consumer, investment and government spending, plus the value of exports, minus the value of imports. This is a definition of GDP, but what does it have to do with inflation. (Investopedia)
Unemployment is another aspect that could affect inflation. Unemployment is an economic condition marked by the fact that individuals actively seeking jobs remain un-hired. (Investopedia)
Money supply is the main indicator of how inflation is going to act. Money supply is the total supply of money in circulation in a given country's economy at a given
References: Arai, M., Kinnwall, M., & Thoursie, P. (2004). Cyclical and causal patterns of inflation and GDP growth. Applied Economics, 36(15), 1705-1715. doi:10.1080/0003684042000266874 Investopedia Moroney, J. R. (2002). Money Growth, Output Growth, and Inflation: Estimation of a Modern Quantity Theory. Southern Economic Journal, 69(2), 398. Retrieved from EBSCOhost. Rocheteau, G., Rupert, P., & Wright, R. (2007). Inflation and Unemployment in General Equilibrium. Scandinavian Journal of Economics, 109(4), 837-855. doi:10.1111/j.1467-9442.2007.00511.x INDEX 1