Analysis and Measuring Relationship between Inflation and the private Expenditure Consumption in state Kuwait for period (1975-2015)

Abstract

The research aims to Analysis and Measuring Relationship between Inflation and the private Expenditure Consumption in state Kuwait for period(1975-2015 ) Using model Autoregressive Distributed Lag it included data Inflation and the private Expenditure Consumption throughout the research period . The most important conclusion is that the consumer spending variable is the first difference and that the inflation variable is stable at the original level of data. There is a long-term balance between the two variables during the period of research, The results also showed a short-term positive response, from private consumption to inflation. There is no long-term response from private consumption spending to inflation. The most important recommendations are the need for relative stability in consumer spending and control of inflation rates.