The relationship between inflation and the budget deficit in Turkey
Journal of Business and Economic Statistics
0735-0015 (print)1537-2707 (online)
Taylor & Francis Inc.
412 - 422
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Please cite this item using this persistent URLhttp://hdl.handle.net/11693/25399
This article analyzes the empirical relationship between inflation and the budget deficit for the Turkish economy by a multivariate cointegration analysis. A single-equation model shows that the scaled budget deficit (as well as income growth and debt monetization) significantly affects inflation in Turkey. The conditional model of inflation is constant, and it encompasses a previously estimated model.