Legal perspectives on inflation: Implications for economic growth in 45 nations

Abstract

Inflation, a phenomenon with far-reaching social and economic implications,
has gained heightened attention in the wake of the COVID-19 pandemic, prompting global
scrutiny. This study examines the current state of inflation across 45 nations and reevaluates
its interplay with economic growth, focusing on the years 2010 through 2021. Utilizing
methodologies including Ordinary Least Squares (OLS), fixed effects, and random effects
models, we analyze the legal ramifications of inflation on economic development and
discern disparities between developed and developing jurisdictions. The goal of the study
is to investigate the current state of global inflation and its relationship to economic
development using a sample of 45 nations for the years 2010 through 2021. Our findings
underscore the dual impact of inflation on economic growth, with implications for legal
frameworks and regulatory approaches. There was a negative impact of inflation on the
economic growth in both 45 countries and each group of countries in the period from 2010
to 2021. In contrast, inflation remained positive with economic growth during the COVID-
19 pandemic period from 2019 to 2021. The motivation of this research paper is to fill the
gap with previous studies, providing an overview and more objective results for the
inflation situation as well as its impact on economic growth.