Inflation in advanced economies is low by historical standards but there is no threat of deflation. Slower economic … growth is caused by supply-side constraints rather than low inflation. Below-the-target inflation does not damage the … reputation of central banks. Thus, central banks should not try to bring inflation back to the targeted level of 2%. Rather, they …

shows a strong negative effect of inflation on growth for the OECD countries, one that decreases marginally as the inflation … rate rises. The APEC results show some evidence of the inflation rate effect, with a significant negative impact at higher … inflation ranges. Segmenting the sample by country, according to average inflation rates, results in a stronger effect of …