Inflation and Growth: Some Theory and Evidence

Inflation and Growth: Some Theory and Evidence

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 ...

Inflation , Growth and Central Banks : Theory and Evidence

Openness and Inflation: Theory and Evidence*

Because unanticipated monetary expansion leads to real exchange rate depreciation, and because the harms of real depreciation are greater in more open economies, the benefits of unanticipated expansion are decreasing in the degree of openness. Models in which the absence of precommitment in monetary policy leads to excessive inflation therefore predict lower average inflation in more open econo...

Natural Resources and Economic Growth: Some Theory and Evidence

We develop a one-sector endogenous growth model in which renewable natural resources are both a factor of production and measure of environmental quality. Along the balanced growth path, sustained economic growth and a non-deteriorating environment are shown to coexist. Moreover, steady-state economic growth and natural-resource utilization are positively related. Empirically, a cross-country g...

Inflation in Ireland: Theory and Evidence

The purpose of this paper is to address some important questions surrounding the determinants of Irish inflation. As a backdrop, the international theoretical literature on inflation is selectively reviewed, with a view towards assessing its relevance to Ireland. Subsequently, the relevant Irish empirical literature is assessed in order to highlight the main outstanding areas of disagreement su...