Fiscal Deficit and Inflation: An empirical analysis for India
This study examines the linkage between fiscal deficit and inflation in India. The main objective of this study is to examine the factors that are responsible for increasing fiscal deficit in India, by taking into account all factors that can affect the status of fiscal deficit. The study finds that inflation is not at all cause of fiscal deficit. However, government expenditure and money supply are found to be important determinants of mounting fiscal deficit.
Volume (Year): 14 (2011)
Issue (Month): 42 (December)
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- Mohammad Aslam Chaudhary & Naved Ahmad, 1995. "Money Supply, Deficit, and Inflation in Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 34(4), pages 945-956.
- George Hondroyiannis & Evangelia Papapetrou, 1997. "Are budget deficits inflationary? A cointegration approach," Applied Economics Letters, Taylor & Francis Journals, vol. 4(8), pages 493-496.
- Momi Dahan, 1998. "The Fiscal Effects of Monetary Policy," IMF Working Papers 98/66, International Monetary Fund.
- Tayyeb Shabbir & Ayaz Ahmed, 1994. "Are Government Budget Deficits Inflationary? Evidence from Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 33(4), pages 955-967.
- O. Cevdet Akcay & C. Emre Alper & Suleyman Ozmucur, 2001. "Budget Deficit, Inflation and Debt Sustainability: Evidence from Turkey(1970-2000)," Working Papers 2001/12, Bogazici University, Department of Economics.
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