Table of Contents
Economics Research International
Volume 2014, Article ID 783505, 8 pages
Research Article

Investigating the Existence of Chaos in Inflation Data in relation to Chaotic Foreign Exchange Rate

1Department of Mathematics, Indian Institute of Engineering Science & Technology, Shibpur, Howrah 711103, India
2N H School, 1/257 Naktala, Kolkata 700 047, India

Received 31 May 2014; Revised 14 September 2014; Accepted 28 September 2014; Published 21 October 2014

Academic Editor: Laura Gardini

Copyright © 2014 Pritha Das and Atin Das. 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.


Foreign exchange (ForEx) rates are amongst the most important economic indices in the international monetary markets. ForEx rate represents the value of one currency in another and it fluctuates over time. It is related to indicators like inflation, interest rate, gross domestic product, and so forth. In a series of works, we investigated and confirmed the chaotic property of ForEx rates by finding positive largest Lyapunov exponent (LLE). As inflation influences ForEx, in this work we would like to address the specific question, Is inflation data also chaotic? We collected data for time period of 2000 to 2013 and tested for nonlinearity in data by surrogate method. Calculating LLE, we find existence of chaos in inflation data for some countries.