Inflation and the Financing of Government Expenditure: An Introductory Analysis with an Application to Turkey
This article presents a simple framework to assess the consistency of appropriately defined fiscal deficits with other macroeconomic targets, such as inflation. It also considers the relation of fiscal deficits to output growth, real exchange rate developments, and management of internal and external debt. Finally, it considers the implications of relying on interest-bearing government debt to postpone the adjustment necessary to restore consistency with inflation targets. It demonstrates how the intertemporal budget constraint of the government creates a tradeoff between current and future adjustment. Real interest rates and output growth rates are shown to determine the terms at which this tradeoff takes place. The usefulness of this framework is demonstrated through an analysis of fiscal options in Turkey in 1985. Copyright 1989 by Oxford University Press.
To our knowledge, this item is not available for
download. To find whether it is available, there are three
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Volume (Year): 3 (1989)
Issue (Month): 1 (January)
|Contact details of provider:|| Postal: |
Phone: (202) 477-1234
Fax: 01865 267 985
Web page: http://wber.oxfordjournals.org/
More information through EDIRC
|Order Information:||Web: http://www.oup.co.uk/journals|
When requesting a correction, please mention this item's handle: RePEc:oup:wbecrv:v:3:y:1989:i:1:p:17-38. 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: (Oxford University Press)or (Christopher F. Baum)
If references are entirely missing, you can add them using this form.