Inflation Thresholds and Growth
Year: 2012
Type: article
Abstract: This paper investigates inflation thresholds that lead to higher growth rates using five-year averages of standard variables for 84 countries from 1965 to 2004. The historical experience has important policy implications for developing countries: (i) the catch-up effect has worked only when inflation is below 12%; (ii) the positive effect of human capital on growth has been present and significant when inflation has been below 15%; (iii) financial development has been effective only when inflation has been below 10%; (iv) government size has negatively affected growth when inflation has been below 10%; (v) trade has positively affected growth when inflation has been below 8%.
Source: International Economic Journal
Author: Hakan Yilmazkuday
Institution: Florida International University
Language: English
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W2007165695