Albarrak, N.S.; Alsanousi, H.A. Advancements in Payments Does Influence Inflation Rate. Preprints2023, 2023100351. https://doi.org/10.20944/preprints202310.0351.v1
APA Style
Albarrak, N.S., & Alsanousi, H.A. (2023). Advancements in Payments Does Influence Inflation Rate. Preprints. https://doi.org/10.20944/preprints202310.0351.v1
Chicago/Turabian Style
Albarrak, N.S. and Hessa Abdulaziz Alsanousi. 2023 "Advancements in Payments Does Influence Inflation Rate" Preprints. https://doi.org/10.20944/preprints202310.0351.v1
Abstract
Inflation is a crucial macroeconomic indicator which measures changes in the general level of prices of goods and services. In recent years, a series of successive events affected the inflation rates. To fight this increase in inflation, governments start to take different actions through their monetary and fiscal policies. In this research 10 independent parameters were used to see their effect on inflation rates. Some are traditional like GDP, Population, and exchange rate while others are some new technology related parameters like E-money payments transactions and number of Institutions offering payment services/instruments. The dependent parameter is the consumer price index (CPI). All parameters were taken in 8 years period (2013-2020). Supervised machine learning is used to run a robust regression model. The results show that technology advancement in payments is not a catalyst for price inflation if it is used properly and under regulations and control monetary policies. The results direct regulators to have a good understanding of the situation and take the right action in their policies of adopting fintech businesses.
Copyright:
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
