Does Inflation Harm Economic Growth? Evidence for the OECD / Javier Andres, Ignacio Hernando.

Format:

Book

Author/Creator:

Andres, Javier.

Contributor:

National Bureau of Economic Research.

Hernando, Ignacio.

Series:

Working Paper Series (National Bureau of Economic Research) no. w6062.

NBER working paper series no. w6062

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 1997.

Summary:

The purpose of this paper is to study the correlation among growth and inflation at the OECD level, within the framework of the so-called convergence equations, and to discuss whether this correlation withstands a number of improvements in the empirical models, which try to address the most common criticisms of this evidence. The main findings are the following: 1) the negative correlation among growth and inflation is not explained by the experience of high-inflation economies; 2) the estimated costs of inflation are still significant once country-specific effects are allowed for in the empirical model; and 3) the observed correlation cannot be dismissed on the grounds of reverse causation (from GDP to inflation).

Notes:

Print version record

June 1997.