Mayis Gulaliyev, Aygun Alesgerova, Mehseti Esgerova, Leyli Melikova, Sarvinaz Khanlarzadeh, "How Do Monetary And Fiscal Determinants Affect Inflation? Evidence From Panel Data Analysis," WSEAS Transactions on Business and Economics, vol. 23, pp. 1074-1086, 2026, DOI:10.37394/23207.2026.23.82
Mayis Gulaliyev, Aygun Alesgerova, Mehseti Esgerova, Leyli Melikova, Sarvinaz Khanlarzadeh. How Do Monetary And Fiscal Determinants Affect Inflation? Evidence From Panel Data Analysis.
WSEAS Transactions on Business and Economics. 2026;23:1074-1086. 10.37394/23207.2026.23.82
WSEAS Transactions on Business and Economics
Print ISSN: 1109-9526, E-ISSN: 2224-2899
Volume 23, 2026
How Do Monetary And Fiscal Determinants Affect Inflation? Evidence From Panel Data Analysis
Authors: , , , ,
Abstract: The article evaluates the effects of key macroeconomic indicators on inflation using panel analysis. Based on data from 14 countries with varying income levels over 2000-2021, both the Fixed Effects Model and the Generalized Method of Moments (GMM) were applied and compared. The findings show that money supply has an insignificant effect on inflation. When monetary policy is ineffective, fiscal measures become more important. According to the GMM model, the minimum wage reduces inflation, while its version adjusted for purchasing power parity increases it. Unemployment strongly influences inflation, supporting the Phillips curve that links lower unemployment to higher inflation.
Pages: 1074-1086 WSEAS Transactions on Business and Economics, ISSN / E-ISSN: 1109-9526 / 2224-2899, Volume 23, 2026, Art. #82 DOI: 10.37394/23207.2026.23.82
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