Repository | Book | Chapter
(2001) Capitalism and democracy in the 21st century, Heidelberg, Physica.
Debt, growth and inflation in large European economies
a vector auto-regression analysis
Majid Taghavi
pp. 165-179
This paper attempts to empirically test the hypothesis that whether debt matters in the EU. This has been performed by examining the potential adverse effects of debt in large European economies on investment, inflation and growth. Using the hybrid cointegration and vector autoregressive models, the findings, based on the period 1970–97, suggest that debt causes significant adverse effects on investment, but its impact on growth is not clear-cut. Moreover, debt appears to be inflationary in most cases in the long run, though produces no clear short run pattern on inflation.
Publication details
DOI: 10.1007/978-3-662-11287-8_9
Full citation:
Taghavi, M. (2001)., Debt, growth and inflation in large European economies: a vector auto-regression analysis, in D. C. Mueller & U. Cantner (eds.), Capitalism and democracy in the 21st century, Heidelberg, Physica, pp. 165-179.
This document is unfortunately not available for download at the moment.