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BIBTEX RIS

Inflation, Volatility and Growth

1999; Wiley; Volume: 2; Issue: 1 Linguagem: Inglês

10.1111/1468-2362.00021

ISSN

1468-2362

Autores

Ruth Judson, Athanasios Orphanides,

Tópico(s)

Economic Growth and Productivity

Resumo

This paper re‐examines the relationship between inflation, inflation volatility and growth, using cross‐country panel data for the past 30 years. With regard to the level of inflation, we find that exploiting the time dimension of the data reveals a strong negative correlation between inflation and income growth for all but low inflation countries. To examine the role of inflation uncertainty on growth, we use intra‐year inflation data to construct an annual measure of inflation volatility. Using this measure, we find that inflation volatility is also robustly negatively correlated with growth, even after the effect of the level of inflation is controlled for.

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