IMF Staff Papers, Volume 48, No. 1
IMF Staff Papers, November 8, 2001
Source details
- Canonical URL
- IMF Staff Papers, Volume 48, No. 1
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Bibliographic details
- Authors: Robert P Flood
- Published: November 8, 2001
- Series: IMF Staff Papers
- Volume: 48
- DOI: https://doi.org/10.5089/9781451974614.024
Overview
- Paper re-examines the existence of threshold effects in the relationship between inflation and growth using new econometric techniques that provide appropriate procedures for estimation and inference.
- Author: Robert P Flood
- Publication date: November 8, 2001
Key findings
- Estimated threshold level of inflation above which inflation significantly slows growth:
- "1-3 percent" for industrial countries
- "11-12 percent" for developing countries
- For inflation rates above the threshold level, the relationship between inflation and growth is negative and significant.
Robustness and sensitivity
- The negative and significant relationship for inflation above the threshold is robust to:
- the estimation method
- perturbations in the location of the threshold level
- the exclusion of high-inflation observations
- data frequency
- alternative specifications
Data, methods, and scope
- Employs new econometric techniques for estimation and inference of threshold effects in the inflation–growth relationship.
- Pages: 232
- Volume: 2001
- Issue: 003
- Series: IMF Staff Papers No 2001/003
Subjects and keywords
- Subject: Bank credit, Banking, Financial institutions, Foreign exchange, Inflation, Loans, Money, Prices, Tariffs, Taxes
- Keywords: Africa, Asia and Pacific, Bank credit, Central and Eastern Europe, Eastern Europe, ERBS literature, ERBS syndrome, Inflation, Loans, SP, Sub-Saharan Africa, Tariffs, TFP growth, threshold estimate, trade liberalization
Publication and identifiers
- DOI: https://doi.org/10.5089/9781451974614.024
- Stock No: SPIEA0012001
- ISBN: 9781451974614
- ISSN: 1020-7635
IMF Staff Papers, Volume 48, No. 1 — Robert P Flood, November 8, 2001.