Economics, Econometrics and Finance
5 years ago

Budget deficit, money supply, and inflation: A tangled web of causality.

Pakistan journal of applied economics
BUDGET DEFICIT, MONEY SUPPLY AND INFLATION: Testing for Causality
G. M. Sajid, Bushra Riaz

Paper Summary

Budget deficits, money supply, and inflation in Pakistan were studied using data from 1971 to 2003. The researchers found that in the short term, budget deficits, money supply, and inflation are connected. Inflation influences budget deficits, and both types of money supply also impact budget deficits.

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