Inflation and Economic Growth in Latin America: Some Panel Time-Series Evidence

Manoel Bittencourt (bittencourt.manoel@gmail.com)

No 201011, Working Papers from University of Pretoria, Department of Economics

Abstract: In this paper we investigate the role of poor macroeconomic per- formance, in terms of high rates of inflation, in determining economic growth in four Latin American countries between 1970 and 2007. The empirical results, based on the relatively novel panel time-series analy- sis, confirm the anecdotal evidence which suggests that inflation has had a detrimental effect to growth in the region. All in all, we high- light the costs that inflation has had on economic activity, and also the importance of particular economic institutions which were imple- mented in the 1990s - central-bank independence and fiscal responsi- bilities laws- in actually keeping inflation under control in the region, as a first step in the direction of sustained growth and prosperity.

Keywords: Inflation; Growth; Latin America (search for similar items in EconPapers)
JEL-codes: E31 O11 O42 O54 (search for similar items in EconPapers)
Pages: 20 pages
Date: 2010-04
New Economics Papers: this item is included in nep-fdg and nep-mac
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Citations: View citations in EconPapers (3)

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Related works:
Journal Article: Inflation and economic growth in Latin America: Some panel time-series evidence (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:pre:wpaper:201011

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