Threshold Effects in the Relationship Between Inflation and Growth /

This paper reexamines the issue of the existence of threshold effects in the relationship between inflation and growth, using new econometric techniques that provide appropriate procedures for estimation and inference. The threshold level of inflation above which inflation significantly slows growth...

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Detalhes bibliográficos
Autor principal: Senhadji, Abdelhak
Outros Autores: Khan, Mohsin
Formato: Periódico
Idioma:English
Publicado em: Washington, D.C. : International Monetary Fund, 2000.
Colecção:IMF Working Papers; Working Paper ; No. 2000/110
Acesso em linha:Full text available on IMF
Descrição
Resumo:This paper reexamines the issue of the existence of threshold effects in the relationship between inflation and growth, using new econometric techniques that provide appropriate procedures for estimation and inference. The threshold level of inflation above which inflation significantly slows growth is estimated at 1-3 percent for industrial countries and 7-11 percent for developing countries. The negative and significant relationship between inflation and growth, for inflation rates above the threshold level, is quite robust with respect to the estimation method, perturbations in the location of the threshold level, the exclusion of high-inflation observations, data frequency, and alternative specifications.
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Descrição Física:1 online resource (32 pages)
Formato:Mode of access: Internet
ISSN:1018-5941
Acesso:Electronic access restricted to authorized BRAC University faculty, staff and students