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Does Inflation Harm Economic Growth in Iran

Mohsen Mehrara ()
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Mohsen Mehrara: Assistant professor, university of Tehran, Department of Economics, Iran. Email address

Iranian Economic Review (IER), 2007, vol. 12, issue 3, 43-56

Abstract: This paper explores the relation between inflation and economic growth in Iran using annual data for the period 1959-2004 to check whether this relation has a structural breakpoint effect. The results indicate the threshold level of inflation above which inflation significantly slows growth is around 9-12 percent for Iran economy. This range is not surprising, given that it is not possible for the monetary authority to increase or adjust the nominal interest rate above the inflation rate.

Keywords: Iran Economy; Inflation; Economic Growth; Threshold level of inflation (search for similar items in EconPapers)
Date: 2007
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Handle: RePEc:eut:journl:v:12:y:2007:i:3:p:43