TY - BOOK ID - 84540348 TI - Inflation and Financial Depth AU - Khan, Mohsin. AU - Senhadji, Abdelhak. AU - Smith, Bruce. PY - 2001 SN - 1462387373 1452783586 1281600636 1451893566 9786613781321 PB - Washington, D.C. : International Monetary Fund, DB - UniCat KW - Econometrics KW - Finance: General KW - Inflation KW - Price Level KW - Deflation KW - Financial Markets and the Macroeconomy KW - General Financial Markets: General (includes Measurement and Data) KW - Truncated and Censored Models KW - Switching Regression Models KW - Threshold Regression Models KW - Macroeconomics KW - Finance KW - Econometrics & economic statistics KW - Stock markets KW - Financial sector development KW - Market capitalization KW - Threshold analysis KW - Prices KW - Financial services industry KW - Stock exchanges UR - https://www.unicat.be/uniCat?func=search&query=sysid:84540348 AB - There is now a substantial theoretical literature arguing that inflation impedes financial deepening. Furthermore, it has been hypothesized that the relationship is a nonlinear one, in that there is a threshold level of inflation below which inflation has a positive effect on financial depth, but above which the effect turns negative. Using a large cross-country sample, empirical support is found for the existence of such a threshold. The estimates indicate that the threshold level of inflation is generally between 3 and 6 percent a year, depending on the specific measure of financial depth that is used. ER -