Higher inflation boosts long-term growth in emerging markets, study finds.
The article explores how different levels of inflation affect a country's long-term economic growth. By analyzing data from 58 countries, the researchers found that higher inflation can lead to more growth in emerging markets compared to advanced economies. For India, the optimal inflation rate is around 6%. They also discovered that reducing inflation has a smaller impact on growth when inflation is already high. The study suggests that policymakers should consider the trade-offs between inflation and growth when setting inflation targets.