TY  - JOUR
AU  - Fischer,Stanley
TI  - The Role of Macroeconomic Factors in Growth
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 4565
PY  - 1993
Y2  - December 1993
UR  - http://www.nber.org/papers/w4565
L1  - http://www.nber.org/papers/w4565.pdf
N1  - Author contact info:
Stanley Fischer
Governor
Bank of Israel
One Kaplan Street
Jerusalem 91007
ISRAEL
Tel: 9722-655-2701
Fax: 9722-652-8419
E-Mail: sfischer@bankisrael.gov.il
M2  - featured in NBER digest on 1994-06-01
AB  - Using a regression analog of growth accounting, I present cross- sectional and panel regressions showing that growth is negatively associated with inflation, large budget deficits, and distorted foreign exchange markets.  Supplementary evidence suggests that the causation runs from macroeconomic policy to growth.  The framework makes it possible to identify the channels of these effects: inflation reduces growth by reducing investment and productivity growth; budget deficits also reduce both capital accumulation and productivity growth.  Examination of exceptional cases shows that while low inflation and small deficits are not necessary for high growth even over long periods, high inflation is not consistent with sustained growth.
ER  -