The recent upward inflation trends around the globe have raised concerns about the economic implications of such inflationary waves. In this regard, the study examines the impact of inflation rates on the long-run economic growth in Arab countries. In addition, the study uses the pooled mean group as an estimation method. Data covers 21 Arab countries for the period from 1990 to 2020 is used. The findings present evidence that inflation rates below certain threshold levels positively affect the long-run economic growth. Nonetheless, beyond the threshold higher inflation rates lead to negative impact on economic growth. Moreover, the
estimation shows that the inflation threshold varies after controlling for extreme inflation rates and heterogeneity in the sample.
