I am currently writing my dissertation on the classical theory of inflation outlined by Shaikh applied to Britain. My results so far have been very promising with an exceptional relationship between inflation and growth utilisation. However my results have not shown any real correlation between relative new purchasing power and real output growth as Anwar demonstrates for the USA. The results showed a very weak negative correlation. I am unsure if I have made mistakes in my calculations, or if this is perhaps explained by factors such as the financialisation of the British economy? I am curious if other users have attempted to apply the classical theory to a case study country and if you have found similar results? Thanks in advance for any advice that can be offered. Wayne.
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From Prof. Shaikh -
"Cannot say without knowing how it was done. Note that we showed the basic relation for a lot of countries, as shown Ch 15, sections VIII, parts 3-5. Did he try that?
One good way to proceed is to replicate those results for those years, so as to understand how it is done."
Hi Wayne,
Thank you for posting. I am not able to help but I will ask around to see if others may be able to.
Best, Nick