Is There Chaos in Inflation Data?

Abstract

Economic indicators are snippets of financial and economic data published regularly by governmental agencies and the private sector. An exchange rate represents the value of one currency in another and it fluctuates over time. ForEx rates are affected by many highly correlated economic, political and even psychological factors. It was observed that changes in the exchange rate are related to news in the fundamentals which cover Inflation for the country concerned. In a series of work, we investigated and confirmed the chaotic property of ForEx Rates of several countries. In this perspective, we concentrate on nonlinear data analysis of inflation data of nine countries. We find existence of chaos in inflation data for some countries.