Output growth, investment and the real interest rate in long run evidence tend to be negatively affected by inflation …. Inflation then decreases the investment rate, and still decreases both output growth and real interest up to some moderately …. Theoretically, inflation acts as a human capital tax that decreases output growth and the real interest rate, but increases the …

Output growth, investment and the real interest rate are all found empirically to be negatively affected by inflation … occurrence of all three negative inflation effects, on growth, investment and real interest rates, in a model calibrated to …. But a seeming puzzle arises of opposite Tobin-like inflation effects because theory indicates a negative Tobin effect when …