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Government Debt Monetization and Inflation: a Somewhat Jaundiced View

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Author Info
Seccareccia, M.
Sood, A.
Abstract

The purpose of this paper is to evaluate critically both the traditional theory of governments deficit "monetization" and the New Classical views. Using applied time-series analysis, the authors conclude that there is no evidence to support the thoery that there exists a Granger causal link between budget deficits and inflation with the data of the last half-century of the G-7 countries (excluding Japan).

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Publisher Info
Paper provided by University of Ottawa, Department of Economics in its series Working Papers with number 9903e.

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Length: 29 pages
Date of creation: 1999
Date of revision:
Handle: RePEc:ott:wpaper:9903e

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Related research
Keywords: INFLATION ; DEFICIT ; DEBT;

Find related papers by JEL classification:
E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
H62 - Public Economics - - National Budget, Deficit, and Debt - - - Deficit; Surplus
H63 - Public Economics - - National Budget, Deficit, and Debt - - - Debt; Debt Management

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