This paper revisits the question of the real effects of inflation, on the basis of the experience with 23 high … inflation episodes in 17 countries. It finds strong indications that inflation had contractionary effects on a number of … important macroeconomic variables, such as GDP, investment and employment. Moreover, high inflation led to a significant decline …

over the period from 1996Q2 to 2013Q2 by applying Bayesian estimation techniques. …