A Causal Relationship between Inflation and Productivity: An Empirical Approach for Romania

Nikolaos Dritsakis

17 citations0/0 files storedAmerican Journal of Applied Sciences

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Monetary Policy and Economic Impact Economic Growth and Productivity Unemployment and Economic Growth

Abstract

This study attempts to analyze the relationship between the productivity and the inflation of a transition country of the European Union as Romania. For this purpose we use quarterly data since 1990: IV in 2003: I and the causality analysis, which is based on an error correction model. The results of the empirical analysis showed that there is a causal relationship between inflation and productivity in the Romanian economy.

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