<abstract xmlns="http://www.w3.org/1999/xhtml"><p>The article presents the results of estimating economic growth depending on the inflation levels in selected countries. The results were obtained by means of regression splines, in particular, cubic splines and a B-spline curve. The method applied helps to identify both the area of Non-Decreasing Economic Growth Rate of Inflation and inflation for which the rate of growth reaches its maximum. The calculations and graphic presentations demonstrate that maximum rates of economic growth were reached in inflation ranges of 5%-15% for Poland and 3%-16% for the G-20 countries studied. The data analysis leads to the conclusion that central bank margins for their accommodative monetary policies in the studied countries can be wider than it is implied by the doctrinal bases of the inflation targeting policy or its more restrictive version – strict inflation targeting.</p></abstract>

The article presents the results of estimating economic growth depending on the inflation levels in selected countries. The results were obtained by means of regression splines, in particular, cubic splines and a B-spline curve. The method applied helps to identify both the area of Non-Decreasing Economic Growth Rate of Inflation and inflation for which the rate of growth reaches its maximum. The calculations and graphic presentations demonstrate that maximum rates of economic growth were reached in inflation ranges of 5%-15% for Poland and 3%-16% for the G-20 countries studied. The data analysis leads to the conclusion that central bank margins for their accommodative monetary policies in the studied countries can be wider than it is implied by the doctrinal bases of the inflation targeting policy or its more restrictive version – strict inflation targeting.

Non-Decreasing Economic Growth Rate Of Inflation (Ndegri) In Light Of Empirical Studies

Kazimierz Pulaski University of Technology and Humanities in Radom

Econometrics

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

The article presents the results of estimating economic growth depending on the inflation levels in selected countries. The results were obtained by means of...

Non-Decreasing Economic Growth Rate Of Inflation (Ndegri) In Light Of Empirical Studies

Published Online: Mar 28, 2019

Page range: 9 - 18

DOI: https://doi.org/10.15611/eada.2019.1.01

Keywords
low inflation trap, central bank’s inflation target, regression splines

© 2019 Jan L. Bednarczyk et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Non-Decreasing Economic Growth Rate Of Inflation (Ndegri) In Light Of Empirical Studies

Published Online: Mar 28, 2019

Page range: 9 - 18

DOI: https://doi.org/10.15611/eada.2019.1.01

Keywordslow inflation trap, central bank’s inflation target, regression splines

© 2019 Jan L. Bednarczyk et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Keywords
low inflation trap, central bank’s inflation target, regression splines