2012/03/29 by Hakan Yilmazkuday · 1 voice · 2 citations
Economics, Econometrics and Finance · #Economic Growth and Productivity #Fiscal Policy and Economic Growth #Monetary Policy and Economic Impact
paper · doi:10.1080/10168737.2012.658831
openalex publication_date 2012/03/29 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/29
This paper investigates inflation thresholds that lead to higher growth rates using five-year averages of standard variables for 84 countries from 1965 to 2004. The historical experience has important policy implications for developing countries: (i) the catch-up effect has worked only when inflation is below 12%; (ii) the positive effect of human capital on growth has been present and significant when inflation has been below 15%; (iii) financial development has been effective only when inflation has been below 10%; (iv) government size has negatively affected growth when inflation has been below 10%; (v) trade has positively affected growth when inflation has been below 8%.