IDEAS home Printed from https://ideas.repec.org/a/bor/bistre/v15y2015i3p180-191.html
   My bibliography  Save this article

Deficits and inflation; Are monetary and financial institutions worthy to consider or not?

Author

Listed:
  • Tahira Ishaq
  • Hassan M. Mohsin

Abstract

Institutions are important to analyze the relationship between deficits and inflation. This study examines whether deficits are inflationary or not in the presence of dependent central bank and fragile financial markets. A panel dataset has been used for eleven Asian countries from 1981 to 2010. Estimation results from system GMM show that deficits are inflationary for selected sample, while inflationary pressure of budget deficits is particularly stronger when financial markets are not fully developed and central banks are not free to follow their goals and objectives.

Suggested Citation

  • Tahira Ishaq & Hassan M. Mohsin, 2015. "Deficits and inflation; Are monetary and financial institutions worthy to consider or not?," Borsa Istanbul Review, Research and Business Development Department, Borsa Istanbul, vol. 15(3), pages 180-191, September.
  • Handle: RePEc:bor:bistre:v:15:y:2015:i:3:p:180-191
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S2214845015000149
    Download Restriction: no

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mehak Moazam & M. Ali Kemal, 2016. "Inflation in Pakistan: Money or Oil Prices," PIDE-Working Papers 2016:144, Pakistan Institute of Development Economics.
    2. Mehak Moazam & M. Ali Kemal, 2016. "Inflation in Pakistan: Money or Oil Prices," Working Papers id:11507, eSocialSciences.
    3. repec:ksp:journ1:v:4:y:2017:i:4:p:329-342 is not listed on IDEAS
    4. repec:kap:openec:v:29:y:2018:i:2:d:10.1007_s11079-017-9456-x is not listed on IDEAS

    More about this item

    Keywords

    Fiscal deficits; Inflation; Institutions; Central bank independence; Financial markets development;

    JEL classification:

    • H60 - Public Economics - - National Budget, Deficit, and Debt - - - General
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • E50 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bor:bistre:v:15:y:2015:i:3:p:180-191. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ahmet Palu). General contact details of provider: http://edirc.repec.org/data/rdisetr.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.