Inflation and Growth

Abstract

country mean of inflation exceeded the median for each decade. This property reflects the skewing of inflation rates to the right, as shown in Figure 1. That is, there are a number of outliers with positive inflation rates of large magnitude, but none with negative inflation rates of high magnitude. Because this skewness increased in the 1980s, the mean inflation rate rose from the 1970s to the 1980s, although the median rate declined.