Abstract

ATESOGLU, H. Sonmez. Inflation and Investment in the United States. Inv. Econ [online]. 2005, vol.64, n.252, pp.15-20. ISSN 0185-1667.

In this article the empirical relation between inflation and investment spending IS examined using quarterly United States data. Findings indicate a positive cointegration relation between inflation and investment spending. The findings do not support the view that inflation hampers investment. The results suggest that, in the long-run, lowering of inflation may lead to a small reduction in real investment in the United States. These results raise doubts on arguments for low-inflation targeting policy view for the United States that are based on a negative relation between inflation and real investment.

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