Macroeconomic uncertainty, growth and inflation in the Eurozone : a causal approach

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Authors

Plakandaras, Vasilios
Gupta, Rangan
Gogas, Periklis
Papadimitriou, Theophilos

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Volume Title

Publisher

Routledge

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

Sustainable Development Goals

Citation

Vasilios Plakandaras, Rangan Gupta, Periklis Gogas & Theophilos Papadimitriou (2018) Macroeconomic uncertainty, growth and inflation in the Eurozone: a causal approach, Applied Economics Letters, 25:14, 1029-1033, DOI: 10.1080/13504851.2017.1391996.