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Abstract

This article empirically investigates the effect of intelligence on inflation, using data from 122 countries, over the period 1990 2013. The findings suggest strong evidence for the hypothesis that intelligence is negatively linked to inflation. This paper documents that on average, when national IQ increases from the level of El Salvador 78 points to that of Malaysia 91.7 points, the long run inflation decreases by 27 percent. In particular, the negative effect of intelligence on inflation is stronger in countries with low levels of democracy. The negative impact of national IQ remains robust when controlled for potential determinants of inflation.



Item Type: MPRA Paper -

Original Title: Does intelligence help fighting inflation: an empirical test?-

Language: English-

Keywords: inflation; IQ; intelligence; democracy; cross-country-

Subjects: E - Macroeconomics and Monetary Economics > E3 - Prices, Business Fluctuations, and Cycles > E31 - Price Level ; Inflation ; Deflation-





Author: Salahodjaev, Raufhon

Source: https://mpra.ub.uni-muenchen.de/66882/







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