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Inflation, Private Capital Formation And Economic Development In Indonesia 1953-1958

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  • M. Arief Djanin

Abstract

In recent economic literature there are two conflicting Views, especially with reference to the economics of underdeveloped countries, as to the relation of inflation, private capital formation and economic development/ There is a group of economists, to begin with, who developed various arguments, cither on the theoretical level or with an appeal to empirical evidence, to support the thesis that inflation might be used as an engine for economic development of underdeveloped countries (e.g., W.A. Lewis and Earl Hamilton). Otiier economists have argued on either a priori ground or (more often) on empirical grounds, that inflation impedes private capital formation and deters economic development (eg., David Felix and 3.N. Siegel).

Suggested Citation

  • M. Arief Djanin, 1963. "Inflation, Private Capital Formation And Economic Development In Indonesia 1953-1958," Economics and Finance in Indonesia, Faculty of Economics and Business, University of Indonesia, vol. 14, pages 59-76.
    • Handle: RePEc:lpe:efijnl:196317
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