Analysis of the Relationship Between Inflation and Economic Growth

In recent years, with the commodity prices boosting, people are more concerning high price level and it also makes the decision maker a dilemma how to face the inflation trade-off with economic growth in the short run.Meanwhile, hot money flow into many countries and bulk commodity prices of international has also risen, which is doubt that get the inflation worse.But in view to the change of ten years, a lot of country's GDP (gross domestic product) has still a steady growth rate.This paper mainly analyses the authenticity and accuracy of above statement on the ground of the model and date factors that analyses the relatively between mild inflation, normal inflation and hyperinflation and economic growth.It held the point that mild inflation that may lubricate the wheel of labor market, lead the invest market better can promote the economic growth; normal inflation can reduce the unemployment and therefore rise the level of output.While the hyperinflation, taking people a great hazard, leading the economic to low efficient, is bad to economic growth.