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Inflation and Economic Growth in Latin America: Some Panel Time-Series Evidence

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  • Manoel Bittencourt

    ()
    (Department of Economics, University of Pretoria)

Abstract

In this paper we investigate the role of poor macroeconomic per- formance, in terms of high rates of inflation, in determining economic growth in four Latin American countries between 1970 and 2007. The empirical results, based on the relatively novel panel time-series analy- sis, confirm the anecdotal evidence which suggests that inflation has had a detrimental effect to growth in the region. All in all, we high- light the costs that inflation has had on economic activity, and also the importance of particular economic institutions which were imple- mented in the 1990s - central-bank independence and fiscal responsi- bilities laws- in actually keeping inflation under control in the region, as a first step in the direction of sustained growth and prosperity.

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Bibliographic Info

Paper provided by University of Pretoria, Department of Economics in its series Working Papers with number 201011.

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Length: 20 pages
Date of creation: Apr 2010
Date of revision:
Handle: RePEc:pre:wpaper:201011

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Keywords: Inflation; Growth; Latin America;

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Cited by:
  1. 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.
  2. Ali, Sharafat, 2014. "Inflation, Income Inequality and Economic Growth in Pakistan: A Cointegration Analysis," MPRA Paper 53706, University Library of Munich, Germany.
  3. Manoel Bittencourt, Renee van Eyden and Monaheng Seleteng, 2014. "Inflation and Economic Growth in the SADC: Some Panel Time-Series Evidence," Working Papers 404, Economic Research Southern Africa.

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