Table 3.
Stationarity test results.
|
Variable |
ADF-test |
P–P- test |
|||
|---|---|---|---|---|---|
| l(0) | l(1) | l(0) | l(1) | Remarks | |
| INF | −4.058** | −6.958*** | −4.058** | −4.055** | stationary |
| EXR | −4.005** | −4.011** | −4.605*** | −4.621*** | stationary |
| INFG | −5.693*** | −4.741*** | −5.693*** | −5.921*** | stationary |
| MPR | −3.847** | −3.523* | −3.847** | −3.847** | stationary |
| M2 | −4.410*** | −4.712*** | −4.410*** | −4.434*** | stationary |
| GOP | −3.780** | −5.716*** | −3.780** | −3.779** | stationary |
Note: INF, EXR, INFG, MPR, M2 and GOP represents monthly inflation rate, exchange rate depreciation, inflation gap, monetary policy rate, change in broad money supply and change in global oil prices respectively. *, **, and *** implies the 10 %, 5 % and 1 % significance levels respectively at which null hypothesis is rejected.