engleski

Inflation and Output Volatility: Evidence from International Historical Data

This paper adopts a historical perspective to investigate variations in output volatility within and across world economies. The analysis is based on the annual data for 38 OECD and non OECD countries over the last two centuries. We focus on the relationship between inflation and output volatility. The results point to a positive effect of inflation on output volatility. This finding is consistent with the view that, during history, the good conduct of monetary policy had stabilizing effect on output volatility.

output volatility ; inflation ; economic disasters ; monetary policy ; international historical evidence

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