Inflation, Financial Development, and Growth: A Trilateral Analysis

  title={Inflation, Financial Development, and Growth: A Trilateral Analysis},
  author={Peter L. Rousseau and Hakan Yilmazkuday},
  journal={Macroeconomics eJournal},
A large body of evidence links financial development to economic growth, yet the channels through which inflation affects this relationship and its stability have been less thoroughly explored. We take an econometric and graphical approach to examining these channels, and find that higher levels of financial development, combined with low-inflation, are related to higher rates of economic growth, especially in lower income countries, but that financial development loses much of its explanatory… 
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