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Economic Commentary

Inflation, Banking, and Economic Growth

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The world has seen a dramatic decline in inflation rates in recent decades, but concerns about inflation may still be warranted, especially in some countries. Evidence is mounting that inflation is harmful to economic activity even at fairly modest rates of inflation because of the way it adversely affects the banking sector and investment.

Topics
Inflation
Economic growth
05.15.2006ISSN 2163-3738 EC 5/15/2006

The views authors express in Economic Commentary are theirs and not necessarily those of the Federal Reserve Bank of Cleveland or the Board of Governors of the Federal Reserve System. The series editor is Tasia Hane. This paper and its data are subject to revision; please visit clevelandfed.org for updates.

Suggested Citation

Boyd, John, and Bruce Champ. 2006. “Inflation, Banking, and Economic Growth.” Federal Reserve Bank of Cleveland, Economic Commentary 5/15/2006.

This work by Federal Reserve Bank of Cleveland is licensed under Creative Commons Attribution-NonCommercial 4.0 International