The Impact of liquidity on Economic Growth in America's Economy Using a New Approach TVP-FAVAR

Asemeh Javad Gholamrezapour Amiri, Zong Gong

Abstract


This article explores the impact of inflation rate on Economic Growth of the state. There is an immense effect of monetary policy on Economic Growth of the country. In this regard variables have been studied to prove the hypothesis. The data of past 47 years from 1970 to 2016 has been used for driving the result. To determine the relationship between two liquidity on Economic Growth TVP-FAVR technique has been used.

Based on the results of liquidity in the short term, medium term and long term positive impact on economic growth.

 


Keywords


Economic Growth, liquidity, TVP- FAVAR

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