erc/metu
INTERNATIONAL CONFERENCE IN ECONOMICS  IV
September 13-16, 2000, Ankara

Inflation and the Adoption of New Technologies

Michal Brozozowski (Warsaw University, Poland)

Abstract  

Below I investigate the link between inflation and economic growth. I attempt to provide a theoretical explanation of the non-linearity of the growth-inflation relationship observed in many empirical studies. From this a new model is developed which underlines uncertainty over the relative price of goods created by inflation. The main findings are that firms are less apt to adopt new technologies in the face of inflation and they demand innovation of bigger size.

Economic Research Center
Middle East Technical University
06531 Ankara Turkey
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e-mail: metuerc@metu.edu.tr