Relationship Between GDP and Inflation Rate

Abstract

In history, inflation has appeared many times. For example, the Recession. Also, GDP inflation and deflation occur from time to time. However, there is little research about the relationship between inflation and GDP. Therefore, this paper wants to investigate how inflation is associated with GDP. However, there is no linear relationship between these two factors. Investment managers must discover a degree of awareness that aids their decision-making without overwhelming them with superfluous information. Discover the implications of inflation and GDP on the marketplace, the business, and the investment. Innovative banking variations across nations, or within a nation and over time, influence how inflation impacts economic growth. Smaller intermediaries costs mean that inflation has a negative production less than in higher-cost nations, and comparable effects apply within the same nation when intermediation prices shift over time. Inflation's impacts on growth have long been debated, both conceptually and experimentally. In contrast to several financial concerns, where the issue is frequently whether a particular impact or no impact exists, there are consistent theories that indicate inflation can have a favorable, unfavorable, or no influence on economic growth. As a result, it appears to be a perfect condition for testing different ideas against evidence.