4. Conclusions
The case for a negative association of inflation and growth is firmly established
when we look at the temporal association of growth with discrete high
inflation crises. This study does not show similarly robust associations of growth
with variations in low to moderate rates of inflation. Of course, failure to
robustly reject a zero growth-inflation relationship at lower inflation ranges is
not equivalent to acceptin9 a zero growth-inflation relationship at those ranges.
Our conclusion is simply that, in contrast to what is said by the existing
literature, pooled cross-country datasets are not informative about what
happens at lower ranges of inflation. In contrast, the data on discrete high