Data for around 100 countries from 1960 to 1990 are used to assess the effects of inflation on economic performance. If … increase in average inflation by 10 percentage points per year are a reduction of the growth rate of real per capita GDP by 0 … procedures use plausible instruments for inflation, there is some reason to believe that these relations reflect causal …

Recent literature suggests that long-run averages of growth and inflation are only weakly correlated and such … correlation is not robust to exclusion of extreme inflation observations; inclusion of time series panel data has improved matters …, but an aggregate parametric approach remains inconclusive. We propose a nonparametric definition of high inflation crises …

Models of inflation and growth in the sixties emphasized the portfolio substitution mechanism by which higher inflation … to higher growth.The empirical evidence, however, is that growth and inflation are negatively correlated. Reasons for … this negative correlation are investigated, and then embodied in a simple monetary maximizing model. Higher inflation is …