Abstract (may include machine translation)
The paper presents a monetary model of endogenous growth and specifies an econometric
model consistent with it. The economic model suggests a negative inflation-growth effect,
and one that is stronger at lower levels of inflation. Empirical evaluation of the model is
based on a large panel of OECD and APEC member countries over the years 1961-1997.
The hypothesized negative inflation effect is found comprehensively for the OECD countries
to be significant and, as in the theory, to increase marginally as the inflation rate falls. For
APEC countries, the results from using instrumental variables also show significant evidence
of a similar behavior.
model consistent with it. The economic model suggests a negative inflation-growth effect,
and one that is stronger at lower levels of inflation. Empirical evaluation of the model is
based on a large panel of OECD and APEC member countries over the years 1961-1997.
The hypothesized negative inflation effect is found comprehensively for the OECD countries
to be significant and, as in the theory, to increase marginally as the inflation rate falls. For
APEC countries, the results from using instrumental variables also show significant evidence
of a similar behavior.
| Original language | English |
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| Place of Publication | Melbourne |
| Publisher | University of Melbourne |
| State | Published - 2001 |
Publication series
| Name | Melbourne Institute Working Paper Series, Melbourne Institute of Applied Economic and Social Research |
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