El trabajo explora el efecto de la inflación y la variabilidad de precios relativos sobre el crecimiento, para una muestra de siete países con historia inflacionaria, en el contexto de tres regímenes inflacionarios: inflación moderada, alta y extrema (muy alta e hiperinflación). Se encuentra que tanto la inflación como la variabilidad de precios relativos afectan negativamente al crecimiento, aunque el impacto de la primera es sustancialmente mayor. Es decir que la inflación en sí, más que sus efectos sobre el sistema de precios, es nociva para la economía.En particular, los resultados sustentan la hipótesis de que la inflación afecta negativamente al crecimiento en los estados de inflación extrema. La relación negativa entre inflación y crecimiento es notablemente clara en términos de la evolución promedio por régimen inflacionario y especialmente en los episodios de inflación extrema. A su vez, los resultados sugieren que existen otros factores asociados al “ruido” propio de los procesos de alta inflación que inciden negativamente sobre el crecimiento. This paper explores inflation and relative prices variability effects on economic growth. Empirical evidence is evaluated for a sample of seven countries with inflationary episodes in the context of three inflationary regimes: moderate, high and extreme (very high and hyper) inflation. We find that inflation and relative prices variability influence growth negatively, and the impact of the former is significantly higher. The negative relationship between inflation and growth is notably evident when analyzing averages by inflationary regime, specially during extreme inflation episodes. In turn, the results suggest that there are other factor associated with the typical “noise” of high inflation process, which affect negatively economic growth.
Download Info
To download:
If you experience problems downloading a file, check if you have the
proper application to
view it first. Information about this may be contained
in the File-Format links below. In case of further problems read
the IDEAS help
page. Note that these files are not on the IDEAS
site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Contact details of provider: Postal: Beatriz Rodríguez Prado. Facultad de CC.EE. y EE. Avda. Valle del Esgueva. Valladolid 47011 SPAIN Phone: (34) 983 423320 Fax: (34) 983 184568 Web page: http://www.revista-eea.net More information through EDIRC
Find related papers by JEL classification: E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation O54 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean
References listed on IDEAS 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.:
Robert S. Pindyck & Andrés Solimano, 1993.
"Economic Instability and Aggregate Investment,"
NBER Chapters,
in: NBER Macroeconomics Annual 1993, Volume 8, pages 259-318
National Bureau of Economic Research, Inc.
[Downloadable!]
Other versions: