In this chapter we want to investigate, on both theoretical and empirical grounds, the nexus linking inflation and productivity growth. It is worth noticing that some models predict a causal link going from inflation to productivity and hence it is crucial, in the context of the empirical investigation, to clarify the directions of causality characterizing the relationship between these variables. It is also important to carefully distinguish short-run interaction from potential long-run influence running from productivity growth to inflation
The Benign Evolution of Inflation in the Recent Decades and the Role of Productivity Growth / Ribba, Antonio. - STAMPA. - (2008), pp. 133-150.
The Benign Evolution of Inflation in the Recent Decades and the Role of Productivity Growth
RIBBA, Antonio
2008
Abstract
In this chapter we want to investigate, on both theoretical and empirical grounds, the nexus linking inflation and productivity growth. It is worth noticing that some models predict a causal link going from inflation to productivity and hence it is crucial, in the context of the empirical investigation, to clarify the directions of causality characterizing the relationship between these variables. It is also important to carefully distinguish short-run interaction from potential long-run influence running from productivity growth to inflation
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