Makochekanwa, Albert (2008): The impact of a budget deficit on inflation in Zimbabwe.
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The Zimbabwean economy is one of the many numbers of countries that has experienced a relatively high fiscal deficit for a prolonged period with the result of a high inflationary environment. This paper examines the deficit-inflation nexus in the Zimbabwean economy and establishes the causal link that runs from the budget deficit to the inflation rate using Johansen (1991, 1995) cointegration technique over the period 1980 – 2005. Due to massive monetization of the budget deficit, significant inflationary effects are found for increases in the budget deficit.
|Item Type:||MPRA Paper|
|Original Title:||The impact of a budget deficit on inflation in Zimbabwe|
|English Title:||The impact of a budget deficit on inflation in Zimbabwe|
|Keywords:||Budget deficit; inflation; contegration|
|Subjects:||E - Macroeconomics and Monetary Economics > E6 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook > E62 - Fiscal Policy
H - Public Economics > H6 - National Budget, Deficit, and Debt > H62 - Deficit ; Surplus
|Depositing User:||Albert Makochekanwa|
|Date Deposited:||03. Aug 2010 11:09|
|Last Modified:||12. Feb 2013 07:50|
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