The Effect of Inflation on Economic Growth-a CASE Study of Namibia.pdf

1、It is commonly believed among economists and monetary policies makers, that the main objective of the macroeconomic policies is to sustain high economic growth, together with low or stable inflation rate.It is also accep

2、ted in empirical literature that high inflation has an unfavorable effect oneconomic growth and at the same time it has be debatable on how high is hurtful inflation rate.The answer on "how low/high the inflation can be?

3、" Isthat it is depending on the natures and performance of an individual country or economy.Motivated by these argumentive literatures, the main purposeof this study is to empirically examine the relationship between inf

4、lationand economic growth in the context ofNamibia economy.The study employed the annual time series data spanning the sample period of 1980-2014.The econometric technique used in this paper is Ordinal Least Square (OLS)

5、 regression model, Johansen Cointegration model and Granger Causality model.According to the finding of the study, the OLS outcome indicates that there exist a statistically negative relationship between inflation and ec

6、onomic growth.The Johansen Cointegration results convince that there exist a long run relationship between the two variables and the Granger Causality test reveals a unidirectional causality running from inflation to eco

7、nomic growth.Therefore, the policy implication ofthese outcomes is that any increase inflation rate would leads to a negative repercussion on economic growth in
　　Namibia and it is recommended that itis advisable to k