Acta Universitatis Danubius. Œconomica, Vol 14, No 6 (2018)

Abstract

The purpose of this working paper is to investigate if determinants  have an impact on inflation rate in Eurozone Countries by using times series data for 17 countries from year 1995 to 2015, in yearly basis in total 375 observations. The study used quantitative research approach and secondary data and is analyzed by using linear regression model measures: Inflation rate as a dependent variable, and and five indepedent variables such us: GDP to growth rate, Deficit to GDP rate, Public debt to GDP rate, Government bond interest rate and Unenmployment rate. Linear regression model was applied to investigate the impact of GDP to growth rate, deficit to the GDP rate, Public debt to the GDP rate, Government bond interest rate, and Unemployment rate to the dependent variable Inflation rate. From the Linear Regression Model coefficients for inflation rate as a dependent variableshows that three of five variables have a significance one with negative significance and two positive significance. The empirical result shows that the three of five ratios that we mentioned above have a strong influence on the Inflation rate.