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
|