EconPapers    
Economics at your fingertips  
 

Non-linéarité entre inflation et croissance économique: quels enseignements pour la zone BEAC ?

Itchoko Motande Mondjeli Mwa Ndjokou and Pierre Christian Tsopmo ()

Revue d’économie du développement, 2017, vol. 25, issue 2, 41-62

Abstract: The purpose of this paper is to estimate the optimal inflation rate, defined as the threshold level below and above which inflation affects economic growth, from the experience of the BEAC. For this purpose, we use panel data over the period 1985-2013. Relying upon the estimation of Panel Smooth Transition Regression (PSTR) model inspired from Gonz?lez et?al. (2005), our main findings are the following. (i) The optimal inflation rate is around 4.3?%. (ii) Below the threshold, an increase of 1% of inflation enhances growth by 0.28%. Over the threshold, a one percent increase in inflation leads to a reduction of 0.26% in growth. These results are robust with respect to sensitivity analyzes and GMM estimation. Codes JEL?: E31 C23.

Keywords: Inflation-growth relation; Optimal inflation threshold; PSTR model (search for similar items in EconPapers)
JEL-codes: C23 (search for similar items in EconPapers)
Date: 2017
References: Add references at CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
http://www.cairn.info/load_pdf.php?ID_ARTICLE=EDD_312_0041 (application/pdf)
http://www.cairn.info/revue-d-economie-du-developpement-2017-2-page-41.htm (text/html)
free

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cai:edddbu:edd_312_0041

Access Statistics for this article

More articles in Revue d’économie du développement from De Boeck Université Contact information at EDIRC.
Bibliographic data for series maintained by Jean-Baptiste de Vathaire ().

 
Page updated 2021-09-24
Handle: RePEc:cai:edddbu:edd_312_0041