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Monetary Instability And Economic Growth

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  • Peterson, Willis L.
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    Abstract

    Favorable conditions existed for world economic growth during the 1980s and early 1990s. Yet real GDP growth rates for 76 out of 87 countries included in this study decreased during this time, relative to the 1968-80 period. The middle income countries experienced the greatest decline in growth rates, followed by the low income group. Theory and evidence suggest that an increase in the instability of the growth rate of the money supply, largest in the middle income countries and next largest in the low income nations, contributed to this decline.

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    File URL: http://purl.umn.edu/12980
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    Bibliographic Info

    Paper provided by University of Minnesota, Economic Development Center in its series Bulletins with number 12980.

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    Date of creation: 1998
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    Handle: RePEc:ags:umedbu:12980

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    Keywords: Financial Economics; International Development;

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    1. J. Bradford De Long & Lawrence H. Summers, . "Equipment Investment and Economic Growth," J. Bradford De Long's Working Papers _122, University of California at Berkeley, Economics Department.
    2. Landes, David S, 1990. "Why Are We So Rich and They So Poor?," American Economic Review, American Economic Association, vol. 80(2), pages 1-13, May.
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