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Inflation and economic growth in Latin America: Some panel time-series evidence

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  • Bittencourt, Manoel

Abstract

In this paper we investigate the role of macroeconomic performance, mainly in terms of rates of inflation, in determining economic growth in four Latin American countries which suffered hyperinflationary bursts in the 1980s and early 1990s, but that also differ in terms of development levels. The data set covers the period between 1970 and 2007, and the empirical results, based on panel time-series data and analysis, confirm the anecdotal evidence which suggests that inflation has had a detrimental effect to growth in the region. All in all, we highlight the fact that excessive inflation has clearly offset the Mundell–Tobin effect and consequently the high costs that inflation has had on economic activity in the region.

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Bibliographic Info

Article provided by Elsevier in its journal Economic Modelling.

Volume (Year): 29 (2012)
Issue (Month): 2 ()
Pages: 333-340

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Handle: RePEc:eee:ecmode:v:29:y:2012:i:2:p:333-340

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Web page: http://www.elsevier.com/locate/inca/30411

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Keywords: Inflation; Growth; Latin America;

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Cited by:
  1. Manoel Bittencourt & Renee van Eyden & Monaheng Seleteng, 2013. "Inflation and Economic Growth in the SADC: Some Panel Time-Series Evidence," Working Papers 201354, University of Pretoria, Department of Economics.
  2. Ali, Sharafat, 2014. "Inflation, Income Inequality and Economic Growth in Pakistan: A Cointegration Analysis," MPRA Paper 53706, University Library of Munich, Germany.
  3. Poomjai Nacaskul & Kritchaya Janjaroen & Suparit Suwanik, 2012. "Economic Rationales for Central Banking: Historical Evolution, Policy Space, Institutional Integrity, and Paradigm Challenges," Working Papers 2012-04, Economic Research Department, Bank of Thailand.

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