Nonlinear Relation Between Inflation and Growth Panel Data Analysis

The study investigates the nonlinear relationship between inflation and economic growth across various country groups with similar income levels from 1970 to 2011. It establishes a threshold inflation level—3% for high-income countries and 13% for low-income countries—beyond which growth is adversely affected. This finding aligns with earlier empirical research, contributing to the understanding of how inflation impacts economic performance differently based on a country's income status.