The Economics of Money and Banking Chapter 11 Inflation and Deflation >>Inflation and Economic Growth 3 Promotion doctrine:inflation can promote economic growth Effects of Inflation Hindrance doctrine:Inflation is detrimental to economic growth Neutral doctrine:inflation has neither positive nor negative effects because people make reasonable adjustment according to the inflation expectation 9 GUO YING SEM TONGJI UNIVERSITYThe Economics of Money and Banking 9 GUO YING SEM TONGJI UNIVERSITY 3 Inflation and Economic Growth  Promotion doctrine: inflation can promote economic growth Hindrance doctrine: Inflation is detrimental to economic growth  Neutral doctrine: inflation has neither positive nor negative effects because people make reasonable adjustment according to the inflation expectation Effects of Inflation Chapter 11 Inflation and Deflation