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The Relationship between Inflation and Growth

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  • Gazi Ercel

Abstract

In the economic literature, the relationship between growth and inflation has been discussed in different ways with respect to the development stages of the world economy. According to the current view, there is a negative relationship between growth and inflation. This seems to be compatible with the fact that the investments and the economic growth has been negatively affected by the high and chronic inflation rates in Turkey in the last 20 years. Thus, improvement of the long-run growth potential depends on the elimination of the uncertainties that stems from high inflation.

Suggested Citation

  • Gazi Ercel, 1999. "The Relationship between Inflation and Growth," Istanbul Stock Exchange Review, Research and Business Development Department, Borsa Istanbul, vol. 3(12), pages 15-28.
    • Handle: RePEc:bor:iserev:v:3:y:1999:i:12:p:15-28
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