The increase in postcrisis growth above precrisis growth, while inflation
simply returns to or even stays above its precrisis level, is interesting in itself} 7
For one thing, it sheds light on why the growth decline associated with even
a high inflation is hard to see in the cross-section. An inflation crisis will leave its
mark on the country's 34-year average inflation rate, since post-crisis inflation
does not fall below its pre-crisis level. In contrast, the crisis-associated growth
decline will be offset by the postcrisis increase in growth, leaving little or no
mark on its 34-year average growth rate. The low growth, high inflation