Inflation, Inflation Uncertainty and the Economic Growth Nexus: A Review of the Literature

Abstract

Research background: Price stability plays a crucial role in ensuring stabilities in the financial markets as well as the real sector. Despite this, questions are still raised, querying if it is either inflation, inflation uncertainty or a combination of both, which affects economic growth? The results obtained, both theoretically and empirically, differ. This paper seeks to revisit and provide both the theoretical and empirical review of literature on the inflation, inflation uncertainty and economic growth nexus.

Keywords

• inflation
• inflation uncertainty
• price stability
• price informational role
• economic growth
• e31
• o47
• o55