Document Type
Article
Journal/Book Title/Conference
Economic Research Institute Study paper
Publisher
Utah State University
Publication Date
9-1-1987
Rights
Copyright for this work is held by the author. Transmission or reproduction of materials protected by copyright beyond that allowed by fair use requires the written permission of the copyright owners. Works not in the public domain cannot be commercially exploited without permission of the copyright owner. Responsibility for any use rests exclusively with the user. For more information contact the Institutional Repository Librarian at digitalcommons@usu.edu.
First Page
1
Last Page
20
Abstract
The escalating inflation in the second part of the 1970s and the early 1980s has revived interest in the theoretical relationship between inflation and the growth of productivity. The standard theoretical view maintains that the unidirectional flow of causality runs from productivity changes to inflation. It assumes that productivity growth is exogenous, and that positive productivity growth is anti-inflationary because it increases the economy's aggregate supply, which in turn offsets the inflationary pressure. An obvious implication of this view is that the inflation rate could be reduced through productivity growth.
Recommended Citation
Saunders, Peter J. and Biswas, Basudeb, "Inflation and Productivity in the United Kingdom: An Empirical Note" (1987). Economic Research Institute Study Papers. Paper 454.
https://digitalcommons.usu.edu/eri/454