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Nonlinear Relation Between Inflation and Growth - Panel Data Analysis

by Anna Miller
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Current price ₹3,316.00
Original price ₹3,871.00
Original price ₹3,871.00
Original price ₹3,871.00
(-14%)
₹3,316.00
Current price ₹3,316.00

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Book cover type: Paperback
  • ISBN13: 9783656532064
  • Binding: Paperback
  • Subject: N/A
  • Publisher: Grin Verlag
  • Publisher Imprint: Grin Verlag
  • Publication Date:
  • Pages: 52
  • Original Price: USD 39.5
  • Language: English
  • Edition: N/A
  • Item Weight: 82 grams
  • BISAC Subject(s): Economics / General and Development / Economic Development

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.

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