A Granger Causality Test between Wage-Inflation and Price Inflation Case Study on the Egyptian Economy

by By A. A. Abdel-Aziz and Hala Fares .

Abstract: This paper proceeds to present a brief background about of the development of prices and wages in the Egyptian economy from the 1990s until 2005. The Granger causality test was applied to examine causality between change in prices and wage inflation and evaluates the results of the model. The purpose is to identify causality effects and assess the relevance of wage growth as an indicator of short-run price changes.

Key Words: Granger causality test; Cost-push Inflation; Demand-pull Inflation; Wage-Inflation and Price Inflation

A. Abdel-Aziz, alaa_mnn@yahoo.com
Hala Fares, hfares@aucegypt.edu

Editor: Olaomi John Olutunji,olutunji.olaomi@mopipi.ub.bw

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