Macroeconomic uncertainty,growth and inflation in the Eurozone: a causal approach |
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Authors: | Vasilios Plakandaras Rangan Gupta Periklis Gogas Theophilos Papadimitriou |
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Institution: | 1. Department of Economics, Democritus University of Thrace, Komotini, Greece;2. Department of Economics, University of Pretoria, Pretoria, South Africa |
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Abstract: | In this article, we evaluate the causal relationship between macroeconomic uncertainty indices, inflation and growth rate for 17 Eurozone countries on a county-level examination. In performing a series of linear and nonlinear causality tests, we find little evidence of a causal relationship between uncertainty and macroeconomic variables. Thus, macroeconomic analysis based on uncertainty indices should be treated with caution. |
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Keywords: | Output growth inflation uncertainty causality |
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