‘Infl ation leads to an improvement in the allocation of resources and thus to an increase in the employment and output’. Comment. What is the eff ect of infl ation on economic growth? Does there...

‘Infl ation leads to an improvement in the allocation of resources and thus to an increase in the employment and

output’. Comment.

What is the eff ect of infl ation on economic growth? Does there exist a positive relationship between the two?