{"product_id":"the-causality-relationship-between-money-supply-inflation-and-real-gdp-a-case-study-in-ethiopia-von-moges-endalamaw-yigermal","title":"The causality relationship between money supply, inflation and Real GDP","description":"\u003cp\u003eCase Study from the year 2016 in the subject Economics - Monetary theory and policy, , language: English, abstract: Since the main objective of the paper is to test the existence of causality relationship between the three macroeconomic variables, namely real GDP, price level (CPI) and M2 money supply (MS), analysis has been made there by employing 40 years of data (data from 1975-2014). VAR Granger causality test has been made to verify the objective of the paper.\u003c\/p\u003e\u003cp\u003e\u003c\/p\u003e\u003cp\u003eThe VAR Granger causality test result suggesting the existence of strong and significant correlation between the three variable s pairwise. The direction of causation is found to be a uni- directional causation between money supply and inflation, real GDP and Money supply and between real GDP and inflation and the causation runs from money supply to inflation, real GDP to Money supply and real GDP to inflation respectively. From the causation we observed that money supply has relationship with level of price and economic growth (real GDP). Basically targeting monetary expansion has a multiple role to boost economic growth and control the level of inflation.\u003c\/p\u003e\u003cdiv class=\"aw-variant-hidden-subtitle-div\" id=\"aw-variant-subtitle-9783668655980\"\u003e\u003ch3\u003eA case study in Ethiopia\u003c\/h3\u003e\u003c\/div\u003e","brand":"Libri","offers":[{"title":"Softcover - 9783668655980","offer_id":39437233291357,"sku":"9783668655980","price":18.95,"currency_code":"EUR","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0940\/0622\/files\/d67ef79a-f19f-4e03-918d-1569fcc91549.jpg?v=1778473988","url":"https:\/\/shop.autorenwelt.de\/products\/the-causality-relationship-between-money-supply-inflation-and-real-gdp-a-case-study-in-ethiopia-von-moges-endalamaw-yigermal","provider":"Autorenwelt Shop","version":"1.0","type":"link"}