Inflation and economic growth: panel data evidence for South America

This study examines the role of macroeconomic performance—primarily in terms of inflation rates—as a determinant of economic growth in four South American countries that experienced episodes of hyperinflation in the 1980s and early 1990s: Argentina, Bolivia, Brazil, and Peru. The empirical results, based on a time-series panel methodology covering the period from 1970 to 2007, confirm the evidence suggesting that high inflation has a detrimental effect on economic growth. (Audio: Department of Economic Publications)