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http://hdl.handle.net/11718/1022| Title: | On deficit financing |
| Authors: | Swamy, Dalip S. |
| Keywords: | Deficit Financing;Budget deficits;Economics |
| Issue Date: | 13-Mar-2010 |
| Series/Report no.: | WP;1974/24 |
| Abstract: | The main conclusion emerging from the analysis is that the inflationary impact of a budget deficit depends upon the method used to finance that deficit. Using a static and a dynamic macroeconomic model it has been shown that the proportion of budget deficit financed by money creation is a crucial determinant of the rate of price inflation. The price inflaction will be greater, the higher the proportion of budget/ financed by money creation deficit conditions under which this conclusion holds have derived. a crude empirical test is provided. |
| URI: | http://hdl.handle.net/11718/1022 |
| Appears in Collections: | Working Papers |
Files in This Item:
| File | Description | Size | Format | |
|---|---|---|---|---|
| WP 1974_24.pdf | 815 kB | Adobe PDF | View/Open |
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