Is the negative correlation between inflation and growth real? An analysis of the effects of the oil supply shocks
AbstractThis paper investigates the view that the often-documented negative relationship between inflation and economic growth is largely spurious, resulting primarily from supply shocks which raise inflation and hurt growth. Evidence from tests of structural breaks is consistent with this hypothesis, but more detailed examination finds that while incorporation of supply-shock considerations does lower some of the estimates of the effects of inflation on growth for the industrial countries, these remain quite substantial. Little influence is found on the much lower estimates for developing countries.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. 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.
Bibliographic InfoArticle provided by Taylor & Francis Journals in its journal Applied Economics Letters.
Volume (Year): 7 (2000)
Issue (Month): 3 ()
Contact details of provider:
Web page: http://www.tandfonline.com/RAEL20
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Villieu, P. & Minea, Alexandru, 2007. "Long-Run Monetary and Fiscal Policy Trade-Off in an Endogenous Growth Model with Transaction Costs," Proceedings of the German Development Economics Conference, GÃ¶ttingen 2007 23, Verein für Socialpolitik, Research Committee Development Economics.
- Adam Fforde, 2004. "Persuasion: Reflections on Economics, Data and the 'Homogeneity Assumption'," Department of Economics - Working Papers Series 919, The University of Melbourne.
- Richard C.K. Burdekin & Arthur T. Denzau & Manfred W. Keil & Thitithep Sitthiyot & Thomas D. Willett, .
"When Does Inflation Hurt Economic Growth? Different Nonlinearities for Different Economies,"
Claremont Colleges Working Papers
2000-22, Claremont Colleges.
- Burdekin, Richard C.K. & Denzau, Arthur T. & Keil, Manfred W. & Sitthiyot, Thitithep & Willett, Thomas D., 2004. "When does inflation hurt economic growth? Different nonlinearities for different economies," Journal of Macroeconomics, Elsevier, vol. 26(3), pages 519-532, September.
- Minea, Alexandru & Villieu, Patrick, 2009. "Threshold effects in monetary and fiscal policies in a growth model: Assessing the importance of the financial system," Journal of Macroeconomics, Elsevier, vol. 31(2), pages 304-319, June.
- Richard C.K. Burdekin & Arthur T. Denzau & Manfred W. Keil & Thitithep Sitthiyot & Thomas D. Willett, . "Nonlinear Effects of Inflation on Growth: Comment," Claremont Colleges Working Papers 2000-23, Claremont Colleges.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty).
If references are entirely missing, you can add them using this form.