Inflationens påverkan på den ekonomiska tillväxten
(2021) NEKH03 20211Department of Economics
- Abstract
- This paper examines whether the impact of inflation on economic growth has changed over the last few decades. It uses linear panel data for 81 countries over the time period 1960-2020. The study builds on the research done by Robert Barro (1995) which concludes that during the time period 1960-1990 inflation had a negative impact on economic growth. This study confirms that Barro’s results hold and that the impact inflation has on economic growth is different between the time periods 1960-1990 and 1990-2020, where inflation has a less negative, or even slightly positive, impact on economic growth during the second time period. In attempt to explain this difference in impact different aspects of inflation were analyzed (volatility, levels,... (More)
- This paper examines whether the impact of inflation on economic growth has changed over the last few decades. It uses linear panel data for 81 countries over the time period 1960-2020. The study builds on the research done by Robert Barro (1995) which concludes that during the time period 1960-1990 inflation had a negative impact on economic growth. This study confirms that Barro’s results hold and that the impact inflation has on economic growth is different between the time periods 1960-1990 and 1990-2020, where inflation has a less negative, or even slightly positive, impact on economic growth during the second time period. In attempt to explain this difference in impact different aspects of inflation were analyzed (volatility, levels, deflation and inflation targeting). The results show that when inflation’s volatility or levels were low to medium, inflation had a slightly positive impact on economic growth, while it had a less positive impact when volatility or levels were high. When all aspects were included in the regression only volatility had significant results. (The effect of deflation and inflation targeting did not show any statistically significant results.) Furthermore, the study showed that observations with higher volatility and level of inflation were more prevalent during the first time period. Therefore, high volatility (and possibly high levels) of inflation could be one reason inflation’s impact on economic growth was less negative, or even slightly positive, in the second time period compared to the first time period. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/9049595
- author
- Lidman, Tilda LU
- supervisor
- organization
- course
- NEKH03 20211
- year
- 2021
- type
- M2 - Bachelor Degree
- subject
- keywords
- Inflation, ekonomisk tillväxt, volatil inflation, inflationsnivå, paneldata
- language
- Swedish
- id
- 9049595
- date added to LUP
- 2021-07-05 13:31:21
- date last changed
- 2021-07-05 13:31:21
@misc{9049595,
abstract = {{This paper examines whether the impact of inflation on economic growth has changed over the last few decades. It uses linear panel data for 81 countries over the time period 1960-2020. The study builds on the research done by Robert Barro (1995) which concludes that during the time period 1960-1990 inflation had a negative impact on economic growth. This study confirms that Barro’s results hold and that the impact inflation has on economic growth is different between the time periods 1960-1990 and 1990-2020, where inflation has a less negative, or even slightly positive, impact on economic growth during the second time period. In attempt to explain this difference in impact different aspects of inflation were analyzed (volatility, levels, deflation and inflation targeting). The results show that when inflation’s volatility or levels were low to medium, inflation had a slightly positive impact on economic growth, while it had a less positive impact when volatility or levels were high. When all aspects were included in the regression only volatility had significant results. (The effect of deflation and inflation targeting did not show any statistically significant results.) Furthermore, the study showed that observations with higher volatility and level of inflation were more prevalent during the first time period. Therefore, high volatility (and possibly high levels) of inflation could be one reason inflation’s impact on economic growth was less negative, or even slightly positive, in the second time period compared to the first time period.}},
author = {{Lidman, Tilda}},
language = {{swe}},
note = {{Student Paper}},
title = {{Inflationens påverkan på den ekonomiska tillväxten}},
year = {{2021}},
}