Inflation and Firm Growth: A Reassessment

  • Daniel L. Blakley
  • Arne Dag Sti
Conference paper
Part of the Studies in Financial Modelling book series (FINANC.MODELL.)


Investigations into the impact of inflation on firm growth have resulted in ambiguous conclusions within the economic growth and financial management literature. This paper will attempt to clarify this situation and describe conditions under which firm growth will be helped or hindered by inflaction. This is accomplished by constructing a financial modelling framework which incorporates the findings of earlier research and allows the various effects to be contrasted and cumulatively assessed. Our findings suggest that conditions under which inflation may be beneficial to firm growth do exist but are realistically improbable.


Inflation Rate Real Interest Rate Firm Growth Sustainable Growth Money Demand 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


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Copyright information

© Springer-Verlag Berlin · Heidelberg 1991

Authors and Affiliations

  • Daniel L. Blakley
    • 1
  • Arne Dag Sti
    • 1
  1. 1.Bedriftsokonomisk InstituttThe Norwegian School of ManagementSandvikaNorway

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