Download now Free registration required
A large body of evidence links financial development to economic growth, yet the channels through which inflation affects this relationship and its stability have been less thoroughly explored. The authors take an econometric and graphical approach to examining these channels, and find that higher levels of financial development, combined with low inflation, are related to higher rates of economic growth, especially in lower-income countries, but that financial development loses much of its explanatory power in the presence of high inflation.
- Format: PDF
- Size: 816.2 KB