Optimum Inflation Rate In Growth Modeling

• Authors: Baranowski P.
• Languages of publication: PL

Abstracts

EN

Hypothesis concerning the optimum rate of inflation is verified in the article. Several theoretical studies dwelled on a similar subject, but very few have addressed the issue of empirical verification of this hypothesis within the framework of growth models.The author presents estimates of optimal inflation rate derived from a single equation econometric model that explains the growth of GNP. The model is based on a modified approach by C. Jones (1995) and uses panel data that cover 15 countries over a period of 1972-2005. The obtained results seem to corroborate the optimum inflation rate hypothesis. The identified relation indicates that the average increase in CPI index amounting to 3% - 4% allows for the maximum long term growth.

Keywords

EN

INFLATION; OPTIMUM INFLATION RATE

Discipline

• ECONOMICS: ECONOMICS

• Publisher: Komitet Nauk Ekonomicznych PAN, Polskie Towarzystwo Ekonomiczne
• Journal: Ekonomista
• Year: 2008
• Issue: 4
• Pages: 447-466
• Document type: ARTICLE

Contributors

author

Baranowski P.

• P. Baranowski, Uniwersytet Lódzki, Katerda Ekonometrii, ul. Rewolucji 1905r. 41, 90-214 Lódz, Poland

Identifiers

CEJSH db identifier

09PLAAAA058617