Impact of Inflation on Financial Inclusion: A Global and Regional Analysis

This study investigates the effect of inflation on financial inclusion across 61 countries. Using the median quantile regression and two-stage least squares regression methods, the findings reveal that inflation has a positive effect on financial inclusion in European countries and a negative and insignificant effect on African, Asian and the Americas countries. The moderation analysis shows that bank stability does not weaken the adverse effect of inflation on financial inclusion in African countries, but a high bank loan-to-deposit ratio weakens the adverse effect of inflation on financial inclusion and accelerates financial inclusion in a high inflation environment in African countries.