Inflation and economic growth in the long run

This paper tests the proposition that the growth rate of the economy and the level of inflation are negatively correlated in the long run. Even though the original data illustrate the absence of a clear relationship between inflation and growth over time, after using the Baxter and King filter to extract the long run components of the data, a clear negative relation emerges between the two time series. (C) 2003 Elsevier B.V. All rights reserved.