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Abstract
Like several other countries both industrialized and non-industrialized, one of the central objectives of macroeconomic policies in Sierra Leone is to promote economic growth and to keep inflation at a low level. However, there has been substantial debate on whether inflation promotes or harms economic growth. Motivated by this controversial, this study examined the impact of inflation on economic growth and established the existence of inflation growth relationship. Time-series data for the period 1980-2017 were used to examine the impact of inflation on economic growth. The study employed an econometric approach where Correlation coefficient, co-integration technique and error correction models established the relationship between inflation and GDP and Coefficient of elasticity were applied to measure the degree of responsiveness of change in GDP to changes in general price levels. Results suggest that inflation has a negative impact on economic growth. The study also revealed that there was a unique co-integration between inflation and economic growth during the period of study. Consequently, there is evidence of long-run relationship between inflation and economic growth in Sierra Leone. Several policy recommendations were made so as to keep inflation at an acceptable level in the country.