• The Journal of Asian Finance, Economics and Business
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• v.6 no.2
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• pp.269-275
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• 2019

This study intended to examine the relationship between inflation and unemployment rate in Indonesia during 1987 to 2018 period. The study applied a quantitative method using Vector Error Correction Model (VECM) in order to comprehensively understand the causality between inflation and unemployment rates. The data were collected from various main sources including the World Bank, Central Bank of Indonesia, and Central Bureau of Statistics (BPS). The findings showed that inflation has a one-way relationship toward unemployment in Indonesia and it occurs at the third lag. Impulse Response Function (IRF), shows that the inflation rate are fluctuating in response to the shock of unemployment. The unemployment rate responses to shocks from inflation initially increased until it is eventually diminished. It shows that the shocks caused by the impact of inflation were only in the short term. Further, inflation in the three previous lags will have consequences for the unemployment rate in the year. Lastly, both in the long run and short run, unemployment did not affect inflation rates. These findings suggest that high inflation in Indonesia is determined the rising price of basic commodities and fuel. In addition, most companies in Indonesia applying capital intensive so that employment growth in Indonesia is small.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.10
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• pp.239-247
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• 2021

Central Bank authorities should carefully manage inflation rate uncertainties to achieve economic growth and development not only in the short-run but also in the long-run. Since inflation is a key macroeconomic variable, an increased understanding about its behavior is undoubtedly important. Thus, paper employs unit root with breakpoints to examine the mean reverting behavior of inflation rate in the Philippines using monthly data from 2002 to 2020. Empirically, the unit root breakpoint innovational and additive outlier tests favor the stationarity or mean reverting behavior of inflation in the Philippines. Also, results of standard unit root tests, ADF, PP, GLS-Dickey-Fuller, KPSS and NP, provide strong evidence of mean reverting processes. The mean reverting behavior of inflation rate reveals that the monetary policy using inflation targeting framework has succeeded in reducing chronic inflation persistence in the Philippines. Thus, this research supports inflation targeting policy that aims to maintain general price level stability for the Philippine economy's long-term growth and development prospects. The findings of this research remain important for the central bankers for not only providing them better understanding about the behavior of inflation rate, but also helping them formulate and implement policy reforms related to money, credit and banking.

• KDI Journal of Economic Policy
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• v.37 no.sup
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• pp.33-63
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• 2015

This paper attempts to investigate the Korean households' inflation expectations with particular attention to information rigidity. For this purpose, we derive an empirical model from a sticky information model $\acute{a}$ la Mankiw and Reis (2002) and estimate it. In addition, it is also examined whether the expectation formation is state-dependent on macroeconomic conditions. The main findings of this paper are as follows. First, it turns out that the information rigidity in Korean households' inflation expectations is very high. In a month, most of the households simply keep their inflation expectations the same as before instead of updating them based on newly arrived information. Furthermore, when updating their expectations, the households tend to rely on the backward-looking information such as actual inflation rates in the past rather than on the forward-looking forecasts by experts. Second, it is found that the expectation formation is varying as inflation rate changes. Specifically, when the inflation is high, the sensitivity of the households' inflation expectations to actual inflation increases and the gap between inflation expectations and actual inflation shrinks. It implies that Korean households update their expectations more frequently when the inflation matters than not.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.2
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• pp.143-149
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• 2020

Low inflation and sustainable growth have been the major macroeconomic goals being pursued by every developing country, Vietnam inclusive. The effect of inflation on economic growth has been intensively analyzed by a variety of studies, but the empirical evidence more often than not remains controversial and ambiguous. One common hypothesis of previous studies is that they have assumed that the effect of inflation on growth is symmetric. The main purpose of this study is to investigate the asymmetric effect of inflation and money supply on economic growth using the Nonlinear Autoregressive Distributed Lag approach introduced by Shin, Byungchul, and Greenwood-nimmo (2013) for Vietnam over the period 1990-2017. Empirical results provide evidence that the effects of inflation on economic growth are negative and asymmetric in the long run. The impact of money supply on growth is positive in both the short-run and long-run. Accordingly, the impact of the increase in the inflation rate is bigger than the decreasing in the long-run. This different impact is significant and high inflation will destruct economic activities. As a result, the study provides empirical evidence for the authorities to plan monetary policies and control the rate of inflation to achieve sustainable economic development in the long-run.

• The Journal of Asian Finance, Economics and Business
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• v.10 no.1
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• pp.79-89
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• 2023

The paper aims to investigate the asymmetric long-run and short-run relationships between inflation and remittance outflows in the Kingdom of Saudi Arabia (hereafter KSA) over the period 1971-2019 by using the Nonlinear Autoregressive Distributed Lag (NARDL) model. The statistical tests have supported the validity and stability of the model. The Wald F-test statistics confirm the existence of a long-run equilibrium relationship among the model variables; remittance outflows, positive (negative) shocks in inflation rates, investment, real GDP, and trade openness. Moreover, the empirical results confirm the existence of an asymmetric effect of the inflation rate on remittance outflows. The response of foreign workers to an increase in inflation rates differs from their response to a decrease in inflation rates. However, this asymmetric relationship between the increases/decreases in inflation and remittance outflows is significantly weak. The weakness of this relationship is due to the high marginal remittance propensity of migrant workers, which is explained by the low consumption propensity of foreign workers and their ability to adjust to the high cost of living due to inflation and the imposition of accompanying fees. Finally, the change in the inflation rate is not among the main factors influencing foreign remittance decisions in Saudi Arabia.

• Journal of The Korean Astronomical Society
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• v.28 no.1
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• pp.67-70
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• 1995

In contrast to conventional belief that extended inflation ends when the Universe percolates, we find inflation may continue at least many Hubble times even after the Universe percolates. What is observed is that inflation will not stop unless the global equation of state changes from inflationary one into radiation one. Thus the energy density of shorter wavelength gravitational waves induced by bubble collision at near the end of inflation should be at least Order $(10^2)\~O(10^3)$ times greater than previous estimation of Turner and Wilcek(TW).

• Journal of Biosystems Engineering
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• v.30 no.2 s.109
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• pp.69-74
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• 2005

This study was carried out to investigate experimentally the effect of the ground condition and tire inflation pressure on rolling characteristics of towed wheel, including the deformation, sinkage, effective rolling radius and motion resistance of tire. The experiment was performed at soil bin for the three levels of off-road conditions(ground-I, ground-II and ground-III) and a on-road condition(ground-IV), and for the four levels of tire inflation pressure which were 80 kPa, 160 kPa, 240 kPa and 320 kPa. The results of this study are summarized as follows: 1. As the tire inflation pressure of towed wheel increased, the tire deformation decreased exponentially, but the tire sinkage increased exponentially. This trend was getting bigger as ground condition was getting softer. 2. The increase of tire inflation pressure increased the effective rolling radius of towed wheel, and this kind of trend occurred greatly as ground condition was soft. As a result, the effective rolling radius for the off-road condition was always larger than that for on-road condition. 3. For the on-road condition, as the tire inflation pressure of towed wheel increased, the motion resistance decreased, but for the off-road condition, augmentation of tire inflation pressure increased the motion resistance. Also, the effect of inflation pressure on motion resistance appeared great as ground condition was soft. Therefore, in order to improve the tire performance by the control of inflation pressure, it is desirable to reduce the tire inflation pressure for off-road condition and to increase the tire inflation pressure for on-road condition.

• Journal of Biosystems Engineering
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• v.27 no.6
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• pp.491-500
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• 2002

This study was carried out to investigate experimentally the effect of the tire inflation pressure of a tractor on soil compaction and tractive performance. Two kinds of field experiments were conducted using an agricultural tractor. One experiment is concerned with the tractive performance of the tractor at the three levels of tire inflation pressure; 50kpa, 100kpa and 200kpa, and the other one is about the soil compaction at the four levels of tire inflation pressure; 50kpa, 100kpa, 150kpa and 200kpa, at three different numbers of passes; 1, 3 and 5 passes. From the results of the field experiment, it was found that decreasing the tire inflation pressure decreased the motion resistance of tractor and increased the tractive force and tractive efficiency. The tractive and working performance of the tractor could be improved by the reduction of tire inflation pressure. Increasing the inflation pressure and the number of passes increased the soil compaction. Rate of compaction increased rapidly at the first pass and declined at subsequent passes. To reduce the effect of soil compaction for the whole field, it is recommended that tractor should follow the rut of the first pass from the subsequent passes, and decrease the inflation pressure of the driving tires up to allowable minimum level.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.12
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• pp.31-38
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• 2021

This study contributes to the existing literature and tries to analyze the validity of the Fisher hypothesis in the Philippines. Using monthly data from January 1995 to December 2020, the empirical analysis used the Engle-Granger and Johansen cointegration testing technique. The correlation coefficient suggests a strong positive association. All things being equal, a rise in inflation leads to a rise in the nominal interest rate. The unit-root tests show that inflation and the nominal interest rate are both stationary. Based on both Engle-Granger and cointegrating regression Durbin-Watson tests, the nominal interest rate and inflation are cointegrated. Likewise, the results from Johansen cointegration indicate that there exists a long-run relationship between the variables. However, we rejected a one-to-one relationship between nominal interest rate and inflation. The error correction term coefficient (ECM) shows that it is statistically significant suggesting that the nominal interest rate adjusts to the inflation rate with a lag. The Pair-wise Granger Causality test reported a bi-directional causal relationship between nominal interest rate and inflation. Inflation targeting has been the monetary policy framework of choice for most central banks. In essence, the conclusions of this study are useful to central banks because they help them better comprehend the long-run equilibrium relationship between the nominal interest rate and inflation.

• Journal of the Korean Society for Industrial and Applied Mathematics
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• v.17 no.2
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• pp.115-128
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• 2013

The optimal portfolio selection problem under inflation risk and subsistence constraints is considered. There are index bonds to invest in financial market and it helps to hedge the inflation risk. By applying the martingale method, the optimal consumption rate and the optimal portfolios are obtained explicitly. Furthermore, the quantitative effect of inflation risk and subsistence constraints on the optimal polices are also described.