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This paper surveys the existing literature on the relationship between inflation and economic growth in developed and … developing countries, highlighting the theoretical and empirical indications. The study finds that the impact of inflation on … overwhelming support in favour of a negative relationship between inflation and growth, especially in developed economies. However …
Persistent link: https://www.econbiz.de/10011875376
The long-run relation between growth and inflation has not yet been studied in the context of nominal price and wage … integrate staggered price- and wage-setting into an endogenous growth framework. In this setting, growth and inflation are … linked via the incentive to innovate. For standard calibrations, the linkage is strong: as trend inflation shifts from -5 to …
Persistent link: https://www.econbiz.de/10009580023
The long-run relation between growth and inflation has not yet been studied in the context of nominal price and wage … integrate staggered price- and wage-setting into an endogenous growth framework. In this setting, growth and inflation are … linked via the incentive to innovate. For standard calibrations, the linkage is strong: as trend inflation shifts from -5 to …
Persistent link: https://www.econbiz.de/10013103408
inflation-growth effect. We compare this economy to more standard models with respect to the effect of the money / credit … exchange technology. We find a markedly negative effect of inflation on economic growth using very standard calibration …. Analytically the model employs a general equilibrium version of the Tobin-type substitution in the face of higher inflation that …
Persistent link: https://www.econbiz.de/10014140312
This paper investigates the relationship between inflation and output in the context of an economy facing persistent … high inflation. By analyzing the case of Brazil, we find that inflation does not impact real output in the long run, but … that in the short run there exists a negative effect from inflation on output. These results support Sidrauski's (1967 …
Persistent link: https://www.econbiz.de/10014071048
inflation in order to stabilize the expectations of households, firms and innovators. Endogenous growth provides a self … debt-stabilizing inflation when current fiscal deficits are not backed by future fiscal surpluses. Because growth creates … unique stable equilibrium, provided that the policy permits r−g to fall with inflation. …
Persistent link: https://www.econbiz.de/10014457581
for monetary policy, such as output, productivity, investment, employment and prices. This paper takes stock of … through a number of channels, including productivity, employment, competition and prices; (iii) digitalisation raises … productivity and lowers prices, similarly to other supply/technology shocks; (iv) this has implications for monetary policy and its …
Persistent link: https://www.econbiz.de/10012254362
This study investigates the links existing between inflationary trend, agricultural productivity and economic growth in … from inflationary trend to agricultural productivity, unidirectional causality from agricultural productivity to economic … Central Bank of Nigeria should pay more attention to the trend of inflation and pursue policies that will ensure single digit …
Persistent link: https://www.econbiz.de/10011489612
) shifts with productivity growth. On this basis we estimate a dynamic system of macrolabour equations to evaluate the slope of … the PC and explain the evolution of inflation and unemployment in the US from 1970 to 2006. Since our empirical …-run. Furthermore, during the stagflating 70s, the productivity slowdown contributed substantially to the increases in both unemployment …
Persistent link: https://www.econbiz.de/10013158034
) shifts with productivity growth. On this basis we estimate a dynamic system of macrolabour equations to evaluate the slope of … the PC and explain the evolution of inflation and unemployment in the US from 1970 to 2006. Since our empirical …-run. Furthermore, during the stagflating 70s, the productivity slowdown contributed substantially to the increases in both unemployment …
Persistent link: https://www.econbiz.de/10014212432