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Revisiting the relationship between inflation and growth: a note on the role of exchange rate regimes

Research output: Contribution to journalJournal article

Published
<mark>Journal publication date</mark>1/01/2011
<mark>Journal</mark>Economic Issues
Issue number1
Volume16
Number of pages15
Pages (from-to)37-52
Publication statusPublished
Original languageEnglish

Abstract

Drawing from recent advances in the classification of exchange rate regimes, this note revisits empirically the relationship between inflation and growth under alternative exchange rate regimes. The results, based on a panel of 125 industrialised and developing countries over the period 1980-2004, indicate that the costs of inflation for economic growth are significant only in the case of developing countries, and are higher for floating exchange rates than they are under fixed or intermediate regimes.