In general, the evidence across a large set of countries bears out what we observed in India over the high growth episode in India immediately before the crisis period and also in China over the past decade. Faster growth seems to persist in an environment of low inflation.
Second, recent analytical work on the Phillips Curve, which represents the trade-off between growth (unemployment) and inflation suggests a break in the relationship between growth and inflation at some threshold rate of inflation (See of Akerlof, et al., 20001 and Palley, 20032, 20083).