EconPapers    
Economics at your fingertips  
 

Inflation and growth: new evidence from a dynamic panel threshold analysis

Stephanie Kremer, Alexander Bick and Dieter Nautz ()

No 2009/9, Discussion Papers from Free University Berlin, School of Business & Economics

Abstract: We introduce a dynamic panel threshold model to shed new light on the impact of inflation on long-term economic growth. The empirical analysis is based on a large panel-data set including 124 countries during the period from 1950 to 2004. For industrialized countries, our results confirm the inflation targets of about 2% set by many central banks. For non-industrialized countries, we estimate that inflation hampers growth if it exceeds 17%. Below this threshold, however, the impact of inflation on growth remains insignificant. Therefore, our results do not support growth-enhancing effects of inflation in developing countries.

Keywords: Inflation Thresholds; Inflation and Growth; Dynamic Panel Threshold Model (search for similar items in EconPapers)
JEL-codes: E31 C23 O40 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cba, nep-fdg, nep-mac and nep-mon
Date: 2009
References: Add references at CitEc
Citations: View citations in EconPapers (14) Track citations by RSS feed

Downloads: (external link)
https://www.econstor.eu/bitstream/10419/28098/1/608757993.PDF (application/pdf)

Related works:
Journal Article: Inflation and growth: new evidence from a dynamic panel threshold analysis (2013) Downloads
Working Paper: Inflation and Growth: New Evidence From a Dynamic Panel Threshold Analysis (2009) Downloads
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:zbw:fubsbe:20099

Access Statistics for this paper

More papers in Discussion Papers from Free University Berlin, School of Business & Economics Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().

 
Page updated 2019-12-20
Handle: RePEc:zbw:fubsbe:20099