The Impact of Inflation on Economic Growth in Developing Countries

Inflation is a sustained increase in the general price level, and its impact on economic growth has been widely debated, especially in developing countries. The purpose of this study is to examine the relationship between inflation and economic growth in developing economies. The research problem addresses the question of whether moderate inflation can stimulate growth or whether high inflation consistently hinders economic development. The importance of this research lies in the fact that developing countries often struggle with inflationary pressures that affect investment, savings, and real output. The research method is descriptive and analytical, and data collection is based on library research and systematic review of academic sources. The findings indicate that low to moderate inflation may have a neutral or slightly positive effect on growth, but high inflation significantly reduces economic growth by creating uncertainty, distorting resource allocation, and reducing real wages. This paper provides a comprehensive review of empirical evidence from developing regions.

کلیدواژه ها:

Inflation ، Economic Growth ، Developing Countries ، Price Stability ، Monetary Policy ، Threshold Effect