Inflation and Growth: Stories Short and Tall

Jonathan R. W. Temple

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Monetary Policy and Economic Impact Economic Theory and Policy Economic Growth and Productivity

Abstract

This paper reviews the stories that economists tell about the growth effects of inflation. Informal accounts are common, but there are few models that get to grips with the effects that are probably central. Partly as a result of this, and partly as a result of many econometric problems, much of the empirical evidence remains unconvincing. The paper assesses the various contributions, and suggests possible improvements.

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