University of Tehran Iranian Economic Review 1026-6542 19 3 2015 12 01 Causal Nexus between Inflation and Economic Growth of Japan 265 278 56846 10.22059/ier.2015.56846 EN Shailender Singh Associate Professor, Department of International Finance, I-Shou University, Taiwan Amar Singh Assistant Professor, Department of Commerce, GraphicEra Hill University, Uttarakhand, India Journal Article 2015 12 13 This study aims to evaluate the link between economic growth and consumer price index (CPI) in Japan for the period of 1980-2014. Initial series were adjusted for stationarity using the Augmented Dickey- Fuller (ADF) test for unit root followed by the application of Johansen Co-integration Test in order to examine the long-run relationship among the variables, while the causalities were evaluated using Granger Causality model. The empirical results reveal that economic growth and CPI are co-integrated and thus exhibit a long-run relationship between the variables. The Granger causality test supports bi-directional causality between economic growth and CPI in Japan. The paper adopts a time series framework of the Vector Error Correlation Models (VECM) to study the dynamic relationship between economic growth and consumer price index for Japan.   https://ier.ut.ac.ir/article_56846_a02a2a049886d319122ce759b190f632.pdf