Politics, Inflation, and the Mundell-Tobin Effect
AbstractThis paper addresses the possibility of a correlation between inflation and investment for countries with inflation below 20%. The existing literature typically finds no correlation below this level of inflation. By instrumenting with an extensive set of political stability and regime variables I have shown that within a lower range of inflation rates, between 5% and 9%, this correlation is positive, highly significant, and shows no signs of reverse causality.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 36443.
Date of creation: 2006
Date of revision:
Politics; Inflation; Investment; Mundell; Tobin;
Other versions of this item:
- E0 - Macroeconomics and Monetary Economics - - General
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