Non-linearity in the Inflation-Growth Relationship in Developing Economies - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Non-linearity in the Inflation-Growth Relationship in Developing Economies write by Deniz Baglan. This book was released on 2014. Non-linearity in the Inflation-Growth Relationship in Developing Economies available in PDF, EPUB and Kindle.
Nonlinear Relation Between Inflation and Growth – Panel Data Analysis
Nonlinear Relation Between Inflation and Growth – Panel Data Analysis - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Nonlinear Relation Between Inflation and Growth – Panel Data Analysis write by Anna Miller. This book was released on 2013-10-24. Nonlinear Relation Between Inflation and Growth – Panel Data Analysis available in PDF, EPUB and Kindle. Master's Thesis from the year 2013 in the subject Economics - Economic Cycle and Growth, grade: 64%, University of Nottingham, language: English, abstract: This paper examines the inflation-growth interaction for different country groups with similar national incomes for the period 1970-2011. It could be confirmed that this relation is strictly nonlinear with a threshold level of inflation of 3% for high-income countries and 13% for low-income countries. Although this result is in line with previous empirical studies based on a similar data set, much smaller samples needed to be used to obtain these results. Inflation threshold levels are estimated using the iteration method and different panel-specific techniques. Strongly significant thresholds were yielded only when controlling for country-fixed effects. Policymakers can use the findings for high-income or industrialised countries as a guide for inflation targeting, however more precise analyses for less advanced countries are needed in order to be useful for monetary policy.
Nonlinear Effects of Inflationon Economic Growth
Nonlinear Effects of Inflationon Economic Growth - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Nonlinear Effects of Inflationon Economic Growth write by Mr.Michael Sarel. This book was released on 1995-06-01. Nonlinear Effects of Inflationon Economic Growth available in PDF, EPUB and Kindle. This paper examines the possibility of nonlinear effects of inflation on economic growth. It finds evidence of a significant structural break in the function that relates economic growth to inflation. The break is estimated to occur when the inflation rate is 8 percent. Below that rate, inflation does not have any effect on growth, or it may even have a slightly positive effect. When the inflation rate is above 8 percent, however, the estimated effect of inflation on growth rates is significant, robust and extremely powerful. The paper also demonstrates that when the existence of the structural break is ignored, the estimated effect of inflation on growth is biased by a factor of three.
Estimating The Inflation–Growth Nexus—A Smooth Transition Model
Estimating The Inflation–Growth Nexus—A Smooth Transition Model - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Estimating The Inflation–Growth Nexus—A Smooth Transition Model write by Mr.Raphael A. Espinoza. This book was released on 2010-03-01. Estimating The Inflation–Growth Nexus—A Smooth Transition Model available in PDF, EPUB and Kindle. Motivated by the global inflation episode of 2007-08 and concern that high levels of inflation could undermine growth, this paper uses a panel of 165 countries and data for 1960-2007 to revisit the nexus between inflation and growth. We use a smooth transition model to investigate the speed at which inflation beyond a threshold becomes harmful to growth, an important consideration in the policy response to rising inflation as the world economy recovers. We estimate that for all country groups (except for advanced countries) inflation above a threshold of about 10 percent quickly becomes harmful to growth, suggesting the need for a prompt policy response to inflation at or above the relevant threshold. For the advanced economies, the threshold is much lower. For oil exporting countries, the estimates are less robust, possibly reflecting heterogeneity among oil producers, but the effect of higher inflation for oil producers is found to be stronger.
A Non-Linearity in the Inflation-Growth Effect
A Non-Linearity in the Inflation-Growth Effect - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook A Non-Linearity in the Inflation-Growth Effect write by Max Gillman. This book was released on 2001. A Non-Linearity in the Inflation-Growth Effect available in PDF, EPUB and Kindle. The paper shows how increases in the inflation rate can cause the output growth rate to decrease by a lessor amount as the inflation rate rises. This is the so-called non-linearity in the inflation-growth effect. Our explanation helps show how model-based estimates of the inflation-growth effect can be consistent with evidence. The model includes an explicit credit service sector that allows avoidance of the inflation tax and that induces and increasingly interest elasticity of money demand. The increased use of credit as the inflation rate rises, and the increase elasticity of substitution between money and credit, means the agent relies increasingly less on leisure to avoid the inflation tax. This lessens the negative effect of inflation on endogenous growth at higher rates of inflation. We present both a closed form solution to develop the intuition and a set of calibrations of the baseline model, of more standard case-only, and cash good/credit good models, and of the baseline extended to included physical capital. The paper also shows how the economy is a special case of the shopping time exchange model. The added micro-foundations allow in addition calibrations of how financial development affects the non-linearity and the magnitude of the inflation-growth effect.
