Does inflation cause poor long-term growth performance?

Countries that have experienced hyperinflation tend to display significantly lower inflation rates than countries that have not. Moreover, these experiences are reasonably uncorrelated with other determinants of long-term growth. This paper thus uses past hyperinflationary experiences to obtain instrumental variables estimates of the effects of inflation on growth. The results provide no indication that OLS estimates previously obtained overstate the effects of inflation. Further, they suggest that inflation has an adverse effect on growth that is economically significant and quite robust statistically.