Journal Description Editorial Committee How to Subscribe Forthcoming Articles Staff Papers Archive Copyright Information Use the free Adobe Acrobat Reader to view pdf files How to use the Datasets Free Email Notification Receive emails when we post new
items of interest to you. |
|
|
|
Warning: Inflation May Be Harmful to Your Growth By Atish Ghosh and Steven Phillips
Full Text of This Article (PDF
157 K) Abstract: While few doubt that very high inflation is bad for growth, there is less agreement about the effects of moderate inflation. Using panel regressions and allowing for a nonlinear specification, this paper finds a statistically and economically significant negative relation between inflation and growth, which holds robustly at all but the lowest inflation rates. A "decision-tree" technique identifies inflation as one of the most important determinants of growth. Finally, short-run growth costs of disinflation are only relevant for the most severe disinflations, or when the initial inflation rate is well within the single-digit range. [JEL E31,O40]
© 1998 International Monetary Fund
|
