The relevance of domestic and foreign capacity utilization rates in forecasting
future inflation rate has been investigated empirically, using five industrialized
countries for which the comparable data are available.
It has been found that capacity utilization rates, both domestic and foreign,
have a long run stable relationship with domestic inflation rate and a positive
shock in the capacity utilization rate results in a significant, although a little bit
delayed, acceleration in the domestic inflation rate. Various econometric techniques
have been used and led to consistent empirical findings.
The results in the present study, therefore, dispute the claim that an increase
in capacity utilization rate may not necessarily lead to an accelerated inflation
down the road. / Graduation date: 1995
| Identifer | oai:union.ndltd.org:ORGSU/oai:ir.library.oregonstate.edu:1957/35192 |
| Date | 10 March 1995 |
| Creators | Padungrat, Teardchart |
| Contributors | Baek, Dae Hyun |
| Source Sets | Oregon State University |
| Language | en_US |
| Detected Language | English |
| Type | Thesis/Dissertation |
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