Grier, K.B.; Henry, O.T.; Olekalns, N. - Department of Economics, Faculty of Business and Economics - 2001
We study the effects of growth volatility and inflation volatility on average rates of output growth and inflation for … the conditional covariance of inflation and growth to be both nondiagonal and asymmetric. We show that the data reject … increased growth uncertainty is associated with significantly higher average growth, and that higher inflation uncertainty is …
