Inflation and growth: Explaining a negative effect
Kormendi and McGuire (1985) document a negative effect of inflation on economic growth for a cross-section of 47 countries during the period 1950-1977. Recent panel evidence such as Barro’s (2001) strengthens the support for such a negative effect. In qualification, Khan and Senhadji (2001), Ghosh and P...
| Main Authors: | , , |
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| Format: | Book Chapter |
| Published: |
2009
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| Online Access: | http://hdl.handle.net/20.500.11937/81818 |
| _version_ | 1848764429679722496 |
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| author | Gillman, M. Harris, Mark Mátyás, L. |
| author_facet | Gillman, M. Harris, Mark Mátyás, L. |
| author_sort | Gillman, M. |
| building | Curtin Institutional Repository |
| collection | Online Access |
| description | Kormendi and McGuire (1985) document a negative effect of inflation on economic growth for a cross-section of 47 countries during the period 1950-1977. Recent panel evidence such as Barro’s (2001) strengthens the support for such a negative effect. In qualification, Khan and Senhadji (2001), Ghosh and Phillips (1998), and Judson and Orphanides (1996) all find a significant negative inflation-growth effect above a certain “threshold” value of the inflation rate, and no significant effect below the threshold value, without using instrumental variables and with differences found between less and more developed country samples. Further the above threshold negative effect that they find is significantly non-linear whereby the marginal effect is stronger at lower inflation rates than at higher ones; see also Fischer (1993). |
| first_indexed | 2025-11-14T11:19:13Z |
| format | Book Chapter |
| id | curtin-20.500.11937-81818 |
| institution | Curtin University Malaysia |
| institution_category | Local University |
| last_indexed | 2025-11-14T11:19:13Z |
| publishDate | 2009 |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | curtin-20.500.11937-818182021-06-22T05:58:49Z Inflation and growth: Explaining a negative effect Gillman, M. Harris, Mark Mátyás, L. Kormendi and McGuire (1985) document a negative effect of inflation on economic growth for a cross-section of 47 countries during the period 1950-1977. Recent panel evidence such as Barro’s (2001) strengthens the support for such a negative effect. In qualification, Khan and Senhadji (2001), Ghosh and Phillips (1998), and Judson and Orphanides (1996) all find a significant negative inflation-growth effect above a certain “threshold” value of the inflation rate, and no significant effect below the threshold value, without using instrumental variables and with differences found between less and more developed country samples. Further the above threshold negative effect that they find is significantly non-linear whereby the marginal effect is stronger at lower inflation rates than at higher ones; see also Fischer (1993). 2009 Book Chapter http://hdl.handle.net/20.500.11937/81818 10.4324/9780203880180 restricted |
| spellingShingle | Gillman, M. Harris, Mark Mátyás, L. Inflation and growth: Explaining a negative effect |
| title | Inflation and growth: Explaining a negative effect |
| title_full | Inflation and growth: Explaining a negative effect |
| title_fullStr | Inflation and growth: Explaining a negative effect |
| title_full_unstemmed | Inflation and growth: Explaining a negative effect |
| title_short | Inflation and growth: Explaining a negative effect |
| title_sort | inflation and growth: explaining a negative effect |
| url | http://hdl.handle.net/20.500.11937/81818 |