The Relationship between Inflation and Growth

Gazi Ercel

Istanbul Stock Exchange Review, 1999, vol. 3, issue 12, 15-28

Abstract: In the economic literature, the relationship between growth and inflation has been discussed in different ways with respect to the development stages of the world economy. According to the current view, there is a negative relationship between growth and inflation. This seems to be compatible with the fact that the investments and the economic growth has been negatively affected by the high and chronic inflation rates in Turkey in the last 20 years. Thus, improvement of the long-run growth potential depends on the elimination of the uncertainties that stems from high inflation.

Date: 1999
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