Predicting Inflation—A Holistic Approach

  title={Predicting Inflation—A Holistic Approach},
  author={Kujtim Avdiu and Stephan Unger},
  journal={Journal of Risk and Financial Management},
The quantity equation is a well-established, theoretic, long-run concept that has been criticized for a variety of reasons, i.e., that no precise statements about causality or dynamics between money growth and inflation can be inferred from its components. These shortcomings can be tackled by estimating inflation based upon a holistic approach and the performance of a ceteris paribus analysis for various levels of quantity and velocity of money, as well as GDP. By testing the validity of the… 
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