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THE RELATIONSHIP BETWEEN ECONOMIC GROWTH AND INFLATION: THE CASE OF POLAND AND SERBIA

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Jednak S., Kragulj D.
Zeszyty Naukowe PWSZ w Płocku. Nauki Ekonomiczne
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2019
PL
DOI: 10.19251/ne/2018.28(7) Summary Obtaining stability, output growth and full employment are the goals of economy. Inflation affects both economy and society. The aim of the paper is to give theoretical overview of the relationship between economic growth and inflation. There is a positive, negative and neutral correlation between inflation and economic growth. During high inflation there is negative influence on economic growth. During the low level of inflation, the relationship is not so prominent. Furthermore, the focus is given to the connection and correlation between these two indicators in Poland, Serbia and the EU from 1990s to 2016. The results show that there is no significant correlation between the two indictors in these countries. Further research would be run with more complex analysis. Key words: economic growth, inflation, Poland, Serbia
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