The Impact of Inflation on Economic Growth in Tanzania, (A Time-Series Study for the Period of 1980–2010)
14 Pages Posted: 4 Sep 2021
Date Written: July 13, 2017
Abstract
The question of Inflation remains one of the critical issues for most countries, especially in their macroeconomic policies. Tanzania, for long, has guided its macroeconomic policies towards having a low inflation level that would promote economic growth. However, there has been substantial debate on whether Inflation promotes or harms economic growth. Motivated by this controversy, this study examined the impact of Inflation on economic growth using Time-series data from 1980 -2010.
The study applied an ordinary least regression analysis to establish the impact of Inflation on economic growth on time series data from 1980 to 2010. The study revealed a negative relationship between Inflation and Economic growth. Thus, the study recommended for policies aimed at maintaining the inflation figure at a single-digit figure if economic growth is to be realized in Tanzania.
Keywords: Inflation, muliticollinerity, Tanzania
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