Inflation and growth
Kremer, Stephanie ;  Bick, Alexander ;  Nautz, Dieter ;  Universität <Berlin, Freie Universität> / Fachbereich Wirtschaftswissenschaft

Main titleInflation and growth
Subtitlenew evidence from a dynamic panel threshold analysis
AuthorKremer, Stephanie
AuthorBick, Alexander
AuthorNautz, Dieter
InstitutionUniversität <Berlin, Freie Universität> / Fachbereich Wirtschaftswissenschaft
No. of Pages19 S.
Series Discussion paper / School of Business & Economics ; 2009/9 : Economics
KeywordsInflation Thresholds; Inflation and Growth; Dynamic Panel Threshold
Classification (DDC)332 Financial economics
338 Production
AbstractWe introduce a dynamic panel threshold model to shed new light on the impact of
inflation on long-term economic growth. The empirical analysis is based on a large
panel-data set including 124 countries during the period from 1950 to 2004. For
industrialized countries, our results confirm the inflation targets of about 2% set
by many central banks. For non-industrialized countries, we estimate that inflation
hampers growth if it exceeds 17%. Below this threshold, however, the impact of
inflation on growth remains insignificant. Therefore, our results do not support
growth-enhancing effects of inflation in developing countries.
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FU DepartmentDepartment Business and Economics
Other affiliation(s)Institut für Statistik und Ökonometrie
Year of publication2009
Type of documentBook
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Created at2009-07-08 : 11:58:42
Last changed2015-01-22 : 04:40:24
Static URLhttp://edocs.fu-berlin.de/docs/receive/FUDOCS_document_000000002536