Output growth, investment and the real interest rate are all found empirically to be negatively affected by inflation …. But a seeming puzzle arises of opposite Tobin-like inflation effects because theory indicates a negative Tobin effect when … investment falls and a positive Tobin effect when the real interest rate rises. We define inflation's Tobin effect more …

The empirical evidence suggests that there is a significant, negative relationship between inflation and economic …. Therefore the technology of the financial sector influences the velocity of money, and consequently, how inflation affects … generates an inflation-growth effect whose magnitude falls in the range found by the empirical studies. Moreover, in contrast to …

The paper formulates a nesting model for studying the theoretical literature on inflation and endogenous growth. It … inflation on growth. Second, it shows that these models can be differentiated primarily by the fact whether there is a Tobin …-type effect of inflation and also whether the inflation-growth effect becomes weaker as the inflation rate rises, a non …