Gupta, RanganMakena, Philton2020-07-132020-07-132019-11Gupta, R & Makena, P 2019, 'Inflation aversion and the growth-inflation relationship', Annals of Economics and Finance, vol. 20, no. 2, pp. 803-815.1529-7373http://hdl.handle.net/2263/75164This paper reexamines the theoretical relationship between inflation and output growth by introducing inflation aversion in a standard overlapping generations monetary endogenous growth model with productive public expenditure. We show that when the time preference parameter is a negative function of expected money growth rate, then the theoretical growth-inflation relationship that emerges is "hump-shaped". This finding is consistent with recent empirical literature.en© 2019 Annals of Economics and FinanceInflationInflation aversionEndogenous growthOutput growthPublic expenditureArticle