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Inflation And Financial Depth Author info | Abstract | Publisher info | Download info | Related research | Statistics KHAN, MOHSIN S.
SENHADJI, ABDELHAK S.
SMITH, BRUCE D.
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There is now a substantial theoretical literature arguing that inflation impedes financial deepening. Furthermore, it has been hypothesized that the relationship is a nonlinear one, in that there is a threshold level of inflation below which inflation has a positive effect on financial depth, but above which the effect turns negative. Using a large cross-country sample, empirical support is found for the existence of such a threshold. The estimates indicate that the threshold level of inflation is generally about 3 6 percent per annum, depending on the specific measure of financial depth that is utilized.
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Article provided by Cambridge University Press in its journal Macroeconomic Dynamics .
Volume (Year): 10 (2006)
Issue (Month): 02 (April)
Pages: 165-182
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Handle: RePEc:cup:macdyn:v:10:y:2006:i:02:p:165-182_05Contact details of provider: Postal: The Edinburgh Building, Shaftesbury Road, Cambridge CB2 2RU UK Fax: +44 (0)1223 325150 Email: Web page: http://journals.cambridge.org/jid_MDY
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Other versions:
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references Cited by : (explanations , Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.)
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10198, University Library of Munich, Germany.
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24/04, Monash University, Department of Econometrics and Business Statistics.
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Norbert Funke & Saleh M. Nsouli, 2003.
"The New Partnership for Africa's Development (NEPAD): Opportunities and Challenges ,"
IMF Working Papers
03/69, International Monetary Fund.
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Alicia García Herrero & Sonsoles Gallego Herrero & Jesús Saurina Salas, 2003.
"The Asian and European Banking Systems: The case of Spain in the quest for development and stability ,"
Finance
0304007, EconWPA.
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Mohsin S. Khan & Axel Schimmelpfennig, 2006.
"Inflation in Pakistan ,"
The Pakistan Development Review ,
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Bhattacharya, Joydeep, 2003.
"Monetary Policy And The Distribution Of Income ,"
Staff General Research Papers
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Mohsin S. Khan & Axel Schimmelpfennig, 2006.
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