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The nonlinear relationship between inflation and economic growth : A dissection of the threshold level between inflation and economic growth in Sweden between 1971-2017.

A common belief about inflation and economic growth has developed during recent years. This belief is that a “low” and stable inflation rate favors economic growth. The underlying arguments for this are that a low inflation rate create a beneficial playground for all participants. A playground which will meliorate investments and ensure a stability for consumers which in return will give a favorable environment for the economy to thrive. This paper aims to clarify this relationship between inflation and economic growth in Sweden between the period 1971-2017 and thus investigate the co-integration relation between the two variables. Additional test will be conducted to explore a potential threshold level of inflation. This threshold level is defined as the point where inflation starts to harm growth.

Identiferoai:union.ndltd.org:UPSALLA1/oai:DiVA.org:lnu-85569
Date January 2019
CreatorsJonason, Gustav, Jismark, Pontus
PublisherLinnéuniversitetet, Institutionen för nationalekonomi och statistik (NS), Linnéuniversitetet, Institutionen för nationalekonomi och statistik (NS)
Source SetsDiVA Archive at Upsalla University
LanguageEnglish
Detected LanguageEnglish
TypeStudent thesis, info:eu-repo/semantics/bachelorThesis, text
Formatapplication/pdf
Rightsinfo:eu-repo/semantics/openAccess

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