Inflation and growth

Updated May 2006. Thanks to William Easterly of the World Bank for supplying some of these references.

Introductory reading

Barro, R. J. (1995). Inflation and economic growth. Bank of England Quarterly Bulletin, 35, May, 166-176.

Barro, R. J. (1997). Determinants of economic growth. MIT Press, Cambridge, Mass.

Briault, C. (1995). The costs of inflation. Bank of England Quarterly Bulletin, February, 33-45.

Bruno, M. and Easterly, W. (1996). Inflation and growth: in search of a stable relationship. Federal Reserve Bank of St. Louis Review, 78(3), 139-146.

Bruno, M. and Easterly, W. (1998). Inflation crises and long-run growth. Journal of Monetary Economics, 41(1), February, 3-26.

Temple, Jonathan (2000). Inflation and growth: stories short and tall. Journal of Economic Surveys, 14(4), September, 395-426.

Further reading

(see also Temple 2000, listed above, for further references)

Andres, J., Domenech, R. and Molinas, C. (1996). Macroeconomic performance and convergence in OECD countries. European Economic Review, 40(9), 1683-1704.

Andres, J. and Hernando, I. (1997). Does inflation harm economic growth? Evidence for the OECD.
NBER working paper no. 6062.

Andres, Javier, Ignacio Hernando, and Malte Kruger (1996). Growth, inflation and the exchange rate regime. Economics Letters, 53(1), 61-65.

Barro, R. J. (1996). Inflation and growth. Federal Reserve Bank of St. Louis Review, 78(3), 153-169.

Black, David C.; Dowd, Michael R. and Keith, Kristen (2001). The Inflation/Growth Relationship: Evidence from State Panel Data. Applied Economics Letters, December, 8(12), 771-74.

Bolton, Daniel M. and Alexander, W. Robert J. (2001). The Differing Consequences of Low and High Rates of Inflation. Applied Economics Letters, June, 8(6), 411-14.

Bose, Niloy (2002). Inflation, the Credit Market, and Economic Growth. Oxford Economic Papers, July, 54(3), 412-34.

Boyd, J. H., Levine, Ross and Smith, Bruce D. (2001). The impact of inflation on financial sector performance. Journal of Monetary Economics, April, 47(2), 221-248.

Bullard, J. and Keating, J. W. (1995). The long-run relationship between inflation and output in postwar economies. Journal of Monetary Economics, 36(3), 477-496.

Cameron, N., Hum, D. and Simpson, W. (1996). Stylized facts and stylized illusions: inflation and productivity revisted. Canadian Journal of Economics, 29(1), 152-62.

Chari, V. V., Larry E. Jones and Rodolfo E. Manuelli (1995). The growth effects of monetary policy. Federal Reserve Bank of Minneapolis Quarterly Review, 19(4), 18-32.

Chari, V. V., Larry E. Jones and Rodolfo E. Manuelli (1996). Inflation, growth and financial intermediation. Federal Reserve Bank of St. Louis Review, 78(3), 41-57.

Choi, S., Smith, B. D. and Boyd, J. H. (1996). Inflation, financial markets, and capital formation. Federal Reserve Bank of St. Louis Review, 78(3), 9-35.

Clark, Todd E. (1997). Cross-country evidence on long-run growth and inflation. Economic Inquiry, 35(1), 70-81.

Cukierman, A., Kalaitzidakis, P., Summers, L. H. and Webb, S. B. (1993). Central bank independence, growth, investment and real rates. Carnegie-Rochester Conference Series on Public Policy, 39, 95-140.

Davis, G. and Kanago, B. (1996). On measuring the effect of inflation uncertainty on real GNP growth. Oxford Economic Papers, 48, 163-175.

De Gregorio, J. (1992). The effects of inflation on economic growth. European Economic Review, 36, 417-24.

De Gregorio, J. (1993). Inflation, taxation and long-run growth. Journal of Monetary Economics, 31, 271-98.

De Long, J. B. and Summers, L. H. (1992). Macroeconomic policy and long-run growth. In Policies for long-run economic growth. The Federal Reserve Bank of Kansas City, Kansas City, Mo.

Engelbrecht, Hans-Juergen and Langley, C. (2001). Inflation crises, deflation, and growth: further evidence. Applied Economics, 33(9), July, 1157-1165.

Fernandez Valdovinos, Carlos G. (2003). Inflation and Economic Growth in the Long Run. Economics Letters, August, 80(2), 167-73.

Fischer, S. (1993). The role of macroeconomic factors in growth. Journal of Monetary Economics, 32(3), 485-511.

Fountas, Stilianos; Karanasos, Menelaos and Kim, Jinki (2002). Inflation and Output Growth Uncertainty and Their Relationship with Inflation and Output Growth. Economics Letters, May, 75(3), 293-301.

Grimes, A. (1991). The effects of inflation on growth: some international evidence. Weltwirtschaftliches Archiv, 631-644.

Gylfason, Thorvaldur and Herbertsson, Tryggvi Thor (2001). Does inflation matter for growth? Japan and the World Economy, December, 13(4), 405-428.

Huybens, Elisabeth and Smith, Bruce D. (1999). Inflation, financial markets and long-run real activity. Journal of Monetary Economics, 43, 283-315.

Jones, Larry E. and Manuelli, Rodolfo E. (1995). Growth and the effects of inflation. Journal of Economic Dynamics and Control, 19(8), 1405-28.

Karras, Georgios (1993). Money, inflation, and output growth: does the Aggregate Supply-Aggregate Demand model explain the international evidence? Weltwirtschaftliches Archiv, 129(4), 662-674.

Kim, Sung and Willett, Thomas D. (2000). Is the Negative Correlation between Inflation and Growth Real? An Analysis of the Effects of the Oil Supply Shocks. Applied Economics Letters, March, 7(3), 141-47.

Levine, R. and Zervos, S. (1994). What we know about policy and growth from cross-country analysis. In L. L. Pasinetti and R. M. Solow (eds.) Economic growth and the structure of long-term development. Macmillan, London.

Palokangas, Tapio (1997). Inflation and growth in an open economy. Economica, 64, 509-518.

Roubini, N. and Sala-i-Martin, X. (1992). Financial repression and economic growth. Journal of Development Economics, 39, 5-30.

Roubini, N. and Sala-i-Martin, X. (1995). A growth model of inflation, tax evasion, and financial repression. Journal of Monetary Economics, 35, 275-301.

Sarel, M. (1996). Nonlinear effects of inflation on economic growth. IMF Staff Papers, 43(1), 199-215.

Wilson, Bradley K. and Culver, Sarah E. (1999). On Measuring the Response of Real GDP Growth to Changes in Inflation Volatility. Quarterly Journal of Business and Economics, Autumn, 38(4), 3-15.

Wu, Yangru and Zhang, Junxi (1998). Endogenous growth and the welfare costs of inflation: a reconsideration. Journal of Economic Dynamics and Control, 22(3), 465-482.

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