Meta-analysis of the Effect of Money Supply on Inflation

Articles in Press

Document Type : Research Paper

Authors

Faculty of Economics, University of Tehran, Tehran, Iran.

10.22059/jte.2025.385993.1008965

Abstract

In this study, a comprehensive meta-analysis was conducted using a random-effects model to examine the relationship between money supply and inflation and to address inconsistencies in previous research. The overall effect of money supply on inflation was estimated at 0/578, providing a broad measure of its impact. However, an assessment using a funnel plot and Egger's test revealed publication bias. To correct for this bias, the "trim and fill" method was applied, reducing the adjusted overall effect to 0/475. Additionally, meta-regression and subgroup analyses were performed to investigate moderating variables. The results showed that the effect of money supply on inflation differs across fixed and floating exchange rate regimes, time periods before and after 2000, and between static and dynamic models. These findings contribute to a clearer understanding of the impact of monetary and economic policies on inflation and provide a foundation for future research.

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Journal of Economic Research (Tahghighat- E- Eghtesadi)

Articles in Press, Accepted Manuscript
Available Online from 15 September 2025

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History

  • Receive Date: 27 December 2024
  • Revise Date: 15 July 2025
  • Accept Date: 15 September 2025

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