Volatility and Growth

  title={Volatility and Growth},
  author={Norman Loayza and Viktoria V. Hnatkovska},
  journal={Economic Growth eJournal},
The authors study the empirical, cross-country relationship between macroeconomic volatility and long-run economic growth. They address four central questions: 1) Does the volatility-growth link depend on country and policy characteristics, such as the level of development or trade openness? 2) Does this link reflect a statistically and economically significant causal effect from volatility to growth? 3) Has this relationship been stable over time and has it become stronger in recent decades? 4… Expand
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