Nonlinear Relation Between Inflation and Growth Panel Data Analysis

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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.