Burdekin, Richard C.K.; Denzau, Arthur T.; Keil, Manfred W. - Economics Department, Claremont McKenna College
We show that the effects of inflation on growth change substantially as the inflation rate rises. Moreover the … inflation first begins to seriously negatively affect growth is around 8% for industrial economies but 3% or less for developing … countries. Marginal growth costs for developing countries then decline significantly above 50% inflation. Failure to account for …