Year: 2025
Type: article
Abstract: The aim of this study is to analyze the relationship between inflation and inflation uncertainty in Serbia. Using the GARCH model, inflation uncertainty was assessed with the EGARH model proving to be the best model. The results of the Granger causality test between inflation and inflation uncertainty showed that inflation affects the growth of inflation uncertainty in the case of Serbia and that the growth of inflation leads to the growth of uncertainty, thus confirming the Friedman-Ball hypothesis. On the other hand, the results showed that inflation uncertainty affects the growth of inflation and that the growth of inflation uncertainty affects the growth of inflation in the case of Serbia which is in accordance with Cukierman and Meltzer's hypothesis.
Authors: Siniša Miletić, Jovanka Popović
Institutions: Univerzitet Union Nikola Tesla, University of Belgrade
Language: English
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W4410154967