Inflation and economic growth in Latin America: Some panel time-series evidence

Manoel Bittencourt ()

Economic Modelling, 2012, vol. 29, issue 2, 333-340

Abstract: In this paper we investigate the role of macroeconomic performance, mainly in terms of rates of inflation, in determining economic growth in four Latin American countries which suffered hyperinflationary bursts in the 1980s and early 1990s, but that also differ in terms of development levels. The data set covers the period between 1970 and 2007, and the empirical results, based on panel time-series data and analysis, confirm the anecdotal evidence which suggests that inflation has had a detrimental effect to growth in the region. All in all, we highlight the fact that excessive inflation has clearly offset the Mundell–Tobin effect and consequently the high costs that inflation has had on economic activity in the region.

Keywords: Inflation; Growth; Latin America (search for similar items in EconPapers)
JEL-codes: E31 O11 O42 O54 (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (28)

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Working Paper: Inflation and Economic Growth in Latin America: Some Panel Time-Series Evidence (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:29:y:2012:i:2:p:333-340

DOI: 10.1016/j.econmod.2011.10.018

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