Shaikh’s Theory of Inflation: Empirical Evidence from European Countries (2001–20)

Özden O., Bolkol H. K.

REVIEW OF POLITICAL ECONOMY, sa.Published online: 27 Apr 2023, 2023 (ESCI) identifier identifier

  • Yayın Türü: Makale / Tam Makale
  • Basım Tarihi: 2023
  • Doi Numarası: 10.1080/09538259.2023.2196938
  • Dergi Adı: REVIEW OF POLITICAL ECONOMY
  • Derginin Tarandığı İndeksler: Emerging Sources Citation Index (ESCI), Scopus, Academic Search Premier, IBZ Online, International Bibliography of Social Sciences, ABI/INFORM, Business Source Elite, Business Source Premier, EconLit, PAIS International, Political Science Complete, Social services abstracts, Sociological abstracts, Worldwide Political Science Abstracts
  • Anahtar Kelimeler: Anwar Shaikh, classical theory of inflation, endogenous money, GMM, UNIT-ROOT TESTS, PANEL-DATA, DYNAMICS, GMM, ENDOGENEITY
  • Marmara Üniversitesi Adresli: Evet

Özet

Anwar Shaikh has proposed the classical theory of inflation in his recent book Capitalism, Competition, Conflict, Crisis. Even though it is a relevant and well-founded heterodox theory, the empirical literature on the subject is scanty. In this article, we empirically evaluate the explanatory capabilities of Shaikh's theory of inflation for the case of Europe. We constructed GMM and Fixed Effects models for the panel of 23 European countries over the period 2001-20. The overall results demonstrated that Shaikh's classical theory of inflation generated empirically successful results in explaining the supply dynamics of European inflation, while it produced no statistically significant effect on the demand dynamics of inflation due to the European inflation level, as expected.