Budget deficits and inflation: the roles of central bank independence and financial market development
Date
2003
Authors
Neyapti, B.
Editor(s)
Advisor
Supervisor
Co-Advisor
Co-Supervisor
Instructor
BUIR Usage Stats
0
views
views
68
downloads
downloads
Citation Stats
Attention Stats
Series
Abstract
This article investigates the relationship between budget deficits and inflation with the view that the nature of this relationship depends on the characteristics of monetary and financial institutions. The main hypothesis is that budget deficits are especially inflationary when both the central bank is not independent and the financial market is not developed enough to contain inflationary expectations. The empirical analysis using a panel data that comprises 54 developed and less developed countries, with one to two decades of observations for each, supports this hypothesis. The findings are also robust to subsets of the sample.
Source Title
Contemporary Economic Policy
Publisher
Wiley-Blackwell Publishing, Inc.
Course
Other identifiers
Book Title
Keywords
Degree Discipline
Degree Level
Degree Name
Citation
Permalink
Published Version (Please cite this version)
Collections
Language
English