02035cas a2200265 a 4500 AALejournalIMF014863 230101c9999 xx r poo 0 0eng d 5.00 USD 9781498399982 1018-5941 BD-DhAAL BD-DhAAL Mohaddes, Kamiar. Does Inflation Slow Long-Run Growth in India? / Kamiar Mohaddes, Mehdi Raissi. Washington, D.C. : International Monetary Fund, 2014. 1 online resource (19 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper examines the long-run relationship between consumer price index industrial workers (CPI-IW) inflation and GDP growth in India. We collect data on a sample of 14 Indian states over the period 1989-2013, and use the cross-sectionally augmented distributed lag (CSDL) approach of Chudik and others (2013) as well as the standard panel ARDL method for estimation-to account for cross-state heterogeneity and dependence, dynamics and feedback effects. Our findings suggest that, on average, there is a negative long-run relationship between inflation and economic growth in India. We also find statistically-significant inflation-growth threshold effects in the case of states with persistently-elevated inflation rates of above 5.5 percent. This suggest the need for the Reserve Bank of India to balance the short-term growthinflation trade-off, in light of the long-term negative effects on growth of persistently-high inflation. Mode of access: Internet India imf Raissi, Mehdi. IMF Working Papers; Working Paper ; No. 2014/222 Full text available on IMF http://elibrary.imf.org/view/journals/001/2014/222/001.2014.issue-222-en.xml IMF e-Library