- Title
- A Model of Inflation in Taiwan
- Author(s)
- Gregory C. Chow Gregory Chow (Princeton University & Academia Sinica, Taiwan)
- Abstract
- The model of Chow (1987) for inflation in China is applied to explain inflation in Taiwan. A cointegration relation linear in the log of a price index and the log of the ratio of money supply to output is estimated. Inflation is explained by the change in this log ratio, lagged inflation and the lagged residual of the cointegration relation as an error correction. The model explains Taiwan?s inflation well except during the oil crises of 1973 and 1979-80.
- Creation Date
- 2011-09
- Section URL ID
- CEPS
- Paper Number
- 220
- URL
- https://gceps.princeton.edu/wp-content/uploads/2017/01/220chow.pdf
- File Function
- Jel
- E31, O11
- Keyword(s)
- inflation, Taiwan, error correction
- Suppress
- false
- Series
- 3