Economics, Econometrics and Finance
2 years ago

Inflation harms economic growth, uncertainty still a question mark.

Folia Oeconomica Stetinensia
Inflation, Inflation Uncertainty and the Economic Growth Nexus: A Review of the Literature
Shelton Masimba Tafadzwa Mandeya, Sin‐Yu Ho

Paper Summary

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The article reviews how inflation and uncertainty about inflation can affect economic growth. The researchers looked at different studies to see if inflation and uncertainty impact growth through price information and investment. They found that inflation can harm economic growth, but the impact of uncertainty is still unclear. Studies that looked at both inflation and uncertainty together showed that inflation can be bad for growth. This review helps us understand why there is no clear agreement on how inflation and uncertainty affect economic growth.