Inflation and Growth: In Search of Stable Relationship

A re inflation and growth inversely associated, directly associated, or not associated? Is the empirical inflationgrowth relationship primarily a long-run relationship across countries, a shortrun relationship across time, or both? Like a bickering couple, inflation and growth just cannot seem to decide what their relationship should be. In this article, we characterize the literature on inflation and growth. Aware of the limits of our comparative advantage, we do not intend to do a general survey of the literature. Instead, we look at the aspects of the literature that motivated us to pursue one particular angle in our own recent work: the behavior of growth before, during, and after discrete high inflation crises.