Ahmed, Shaghil; Rogers, John H. - 1997
variables. We find, using over 100 years of U.S. data, that in the long run the effect of inflation on investment and output is … positive (a "Tobin type effect") and the investment rate, and hence the real interest rate, are not independent of inflation …Using a new approach, we reexamine the empirical evidence on the long-term interactions between inflation and real …
