【IMIWorkingPaperNo.1403[EN]】InflationandEconomicGrowthAHump-shapedRelationship

Existing empirical evidence suggests that the relationship between inflation and long-run growth can be hump-shaped. However, the theoretical literature has mainly focused on either a negative or a positive impact of inflation on growth. Our paper revisits the relationship using Barro (1990) framework and finds that the nonlinear hump-shaped relation can be achieved.

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