Izvorni znanstveni članak
https://doi.org/10.1080/1331677X.2018.1498007
Is there any relationship between producer price index and consumer price index in the Czech Republic?
Khalid Khan
; College of Finance, Qilu University of Technology, Jinan, China
Chi-Wei Su
; Department of Finance, Ocean University of China, Qingdao, China;
Ran Tao
; Technological Center, Shandong Entry-Exit Inspection and Quarantine Bureau, Qingdao, China
Chien-Chi Chu
; Department of Finance, Business School of Shantou University, Shantou, China
Sažetak
This article tests the expenditure-switching model in the Czech
Republic to inspect the causal link between the Producer Price
Index (P.P.I.) and Consumer Price Index (C.P.I.). The results of the
co-movement between the P.P.I. and C.P.I. in the period indicate
a positive relationship across the chosen period. We notice that in
the frequency domain, the two variables have a relationship in
higher spectrums (short-term). The results also show that comovements
exist during structural reforms and financial crises,
which in turn supports the expenditure-switching model. The
C.P.I. and P.P.I. are sensitive to variations in exchange rates, which
pass through prices at the domestic level. Exchange rate shocks
lead to inflationary pressure; therefore, long-term oriented intervention
policies of the central banks will be more efficient. This
article provides substantial information to exporters about price
adjustments to exchange rate fluctuation.
Ključne riječi
Producer price index (P.P.I.); Consumer price index (C.P.I.); exchange rate; wavelet analysis
Hrčak ID:
221062
URI
Datum izdavanja:
3.12.2018.
Posjeta: 934 *