Budget Deficits: A Major Cause of Inflation?

1978 ◽  
Vol 6 (1) ◽  
pp. 115-127 ◽  
Author(s):  
Ansel M. Sharp ◽  
Phyllis Smith Flenniken
Keyword(s):  
Economic Theory ◽  
Empirical Evidence ◽  
Money Supply ◽  
The Other ◽  
Real Output ◽  
Budget Deficits ◽  
Single Variable ◽  
Other Hand

This paper examines the proposition that budget deficits are a major cause of inflation. Economic theory does not unconditionally support the proposition, and available empirical evidence does not support the proposition. During periods of expansion, 1949–1973, the increases in the money supply that can be directly traced to budget deficits are often a contributing but not necessarily a major cause of inflations. On the other hand, the fiscal effects of the budget, because of the automatic growth in federal receipts, are usually checking the growth in both prices and real output. Based on the discussion and data presented in this paper, the deficit hypothesis cannot be accepted. Inflations are too complicated phenomena to be explained by a single variable such as budget deficits.

scholarly journals Kleine Bundesländer – Achillesferse des Föderalismus?

2007 ◽  
Vol 56 (2) ◽  
Author(s):  
Norbert Berthold ◽  
Holger Fricke ◽  
Andreas Müller
Keyword(s):  
Economic Theory ◽  
Empirical Evidence ◽  
Economies Of Scale ◽  
The Other ◽  
Economic Outcome ◽  
External Effects ◽  
Federal Level ◽  
Strategic Behaviour ◽  
Other Hand ◽  
Political Decisions

AbstractIn this article we examine whether or not the small size (in terms of population) of some German Laender (states) is harmful. The economic theory of federalism forms the ground on which we present empirical evidence, focusing on our own results for the German Laender. We find evidence that political decisions on federal level instead of Laender level cause preference costs, and so do decisions in big or merged Laender. On the other hand, economies of scale as an assumed advantage of big jurisdictions obviously do not influence the economic outcome very much. We do not find indications for strategic behaviour due to external effects either. Nonetheless, if external effects are regarded as a problem concerning “Stadtstaaten”, they should rather be internalised by horizontal negotiations than by other instruments such as vertical payments or mergers between Laender. Hence, mergers of Laender do not seem to be a necessary precondition for decentralisation, which in turn is advisable as our results show.

scholarly journals A WAR WITHOUT INFLATION: THE CASE OF ARGENTINA 1865–1870

2021 ◽  
pp. 1-9
Author(s):  
Carlos Newland
Keyword(s):  
Economic Growth ◽  
Money Supply ◽  
Currency Substitution ◽  
The Other ◽  
Demand For Money ◽  
Other Hand ◽  
Rapid Economic Growth

ABSTRACT Although paper note issuance increased dramatically in Argentina during the Triple Alliance War, inflation was not significant. This occurred because only a fraction of the increase in paper bills led to an expansion of the money supply, the rest being currency substitution. On the other hand, an increase in the demand for money for transactions was generated by rapid economic growth.

scholarly journals The Milky Way: summary and outlook

1985 ◽  
Vol 106 ◽  
pp. 635-639
Author(s):  
Jeremiah P. Ostriker
Keyword(s):  
Empirical Evidence ◽  
Milky Way ◽  
Oblate Spheroid ◽  
The Other ◽  
Human Thought ◽  
Conspicuous Feature ◽  
Other Hand ◽  
Absorption Of Light ◽  
The Galaxy ◽  
The One

First let me review the historical discussions presented during our symposium: the papers by Paul, Gingerich, Hoskin and Smith. I was greatly impressed by the power of abstract human thought in its confrontation with resistant reality. On the one hand we see again and again extraordinary prescience, where abstract beliefs based on little or no empirical evidence–like the island-universe hypothesis–turn out to be, in their essentials, true. Clearly, we often know more than we know that we know. On the other hand, there are repeated instances of resistance to the most obvious truth due to ingrained beliefs. These may be termed conspiracies of silence. Van Rhijn and Shapley agreed about few things. But one of them was that there was no significant absorption of light in the Galaxy. Yet the most conspicuous feature of the night sky is the Milky Way, and the second most conspicuous feature is the dark rift through its middle. What looks to the most untutored eye like a “sandwich” was modeled as an oblate spheroid. These eminent scientists must have known about the rift, but somehow wished it away in their analyses. I find that very curious. Other examples from earlier times abound. We all know that the Crab supernova was seen from many parts of the globe but, though it was bright enough to be detected by the unaided eye in daylight, its existence was never–so far as we know–recorded in Europe. It did not fit in with the scheme of things, so it was not seen.

scholarly journals Empirical Evidence on Korea’s Import Demand Behavior Revisited

2015 ◽  
Vol 7 (2) ◽  
pp. 11 ◽  
Author(s):  
Jungho Baek
Keyword(s):  
Empirical Evidence ◽  
Import Demand ◽  
The Other ◽  
Distributed Lag ◽  
Other Hand ◽  
Long Run ◽  
Ardl Approach ◽  
Short Run ◽  
Econometric Technique

<p>This paper attempts to re-examine Korea’s import demand behavior with an enhanced<br />econometric technique and an up-to-date dataset. To achieve the goal, an autogressive<br />distributed lag (ARDL) approach is adopted. Our results show the existence of the long-run<br />relationship between Korea’s imports and its major determinants such as income and price. It<br />is also found that income plays an important role in influencing Korea’s imports in both the<br />short- and long-run. On the other hand, price is found to have a significant impact on Korea’s<br />imports only in the short-run.</p>

scholarly journals Scandal, Protection, and Recovery in the Cabinet

2007 ◽  
Vol 101 (1) ◽  
pp. 63-77 ◽  
Author(s):  
TORUN DEWAN ◽  
DAVID P. MYATT
Keyword(s):  
Empirical Evidence ◽  
Prime Minister ◽  
The Other ◽  
Short Term ◽  
Other Hand ◽  
Collective Reputation ◽  
Political Scandals

Empirical evidence suggests that a prime minister benefits from firing ministers who are involved in political scandals. We explore a model in which scandals are positively related to policy activism, so that a prime minister may wish to protect a minister from resignation calls. We find that protection can sometimes discourage activism: it enhances the value of a minister's career and hence encourages him to “sit tight” by moderating his activities. On the other hand, an exogenous increase in exposure to scandals may lead a minister to “live for today” by pursuing controversial policies. The prime minister's ability to protect ministers is limited by her short-term incentive to fire. She may, however, enhance her credibility by building a collective reputation with the cabinet; the heterogeneity of cabinet membership plays an important role.

scholarly journals THE LACK OF SUBJECT INVERSION IN PUERTO RICAN INFINITIVE CLAUSES.

Dialectologia ◽  
2020 ◽  
Author(s):  
Raquel GONZÁLEZ RODRÍGUEZ
Keyword(s):  
Puerto Rican ◽  
Empirical Evidence ◽  
The Other ◽  
Puerto Rican Spanish ◽  
Syntactic Variation ◽  
Other Hand ◽  
The One

This paper explores the syntactic variation in Spanish focusing on a difference between European and Puerto Rican Spanish: the lack of subject-verb inversion in Puerto Rican infinitive clauses. Whereas infinitive subjects must follow the verb in European Spanish, they can also appear in preverbal position in Puerto Rican Spanish. On the one hand, this paper provides a detailed description of the phenomenon; for example, it determines what type of subjects can occupy the preverbal position in Puerto Rican Spanish. On the other hand, it offers empirical evidence for the following claim: this asymmetry between European and Puerto Rican Spanish is derived from infinitive subjects occupying different positions in these varieties, but not from the verb moving from T(ense) to C(omplementizer) in European Spanish.

scholarly journals Nikola Milosevic as critic of Marxism

2013 ◽  
Vol 56 (4) ◽  
pp. 95-110 ◽  
Author(s):  
Dejan Stankovic
Keyword(s):  
Empirical Evidence ◽  
Political Attitudes ◽  
Methodological Approach ◽  
The Other ◽  
Logical Consistency ◽  
Ethical Argument ◽  
False Theory ◽  
Other Hand ◽  
Real Socialism

In this essay, author analyses Nikola Milosevic's critique of Marxism. His methodological approach is the mixture of philosophy, literature and positive sciences, mostly psychology and history. His argument against Marxism consists of two parts: practical, mostly, ethical and political, and theoretical, mostly, methodological and epistemic. Ethical argument against Marxism is based on the idea of critical reconsideration of the relation between goals and means. For Milosevic, Marxism and real socialism are obvious examples of maxim: ?Goal justifies any means necessary for its achievement?. Such ethical standpoint justifies the regime of terror and manipulation. On the other hand, at the methodological and epistemic level, Marxism is an overt example of false theory in positivistic sense. It lacks logical consistency and empirical evidence. Being a theory without a scientific grounds, Marxism is a mere projection of the psychological and political attitudes of its author. Marxism is not a theory in traditional philosophical sense, it is just a theoretical rationalization of basic psychological and political attitudes of it creator and his successors.

A Bank with a Divided Mandate

2020 ◽  
pp. 30-45
Author(s):  
Einar Lie
Keyword(s):  
Real Estate ◽  
Money Supply ◽  
The Other ◽  
The Public ◽  
The Road ◽  
Monetary System ◽  
Other Hand ◽  
The One ◽  
Value Of Money

This chapter examines the two mandates of Norges Bank. In autumn of 1818, Norges Bank began providing ordinary services to the public, discounting bills and lending directly against real estate. The institution was now both the nation’s bank of issue and its sole bank. Expectations of what the bank was to achieve pulled in two diametrically opposed directions. On the one hand, the bank was to take control of the inflated monetary system and bring the value of money back to par, namely the silver value guarantee issued when the Storting established the bank in 1816. Based on both contemporary and modern wisdom, this would speak in favour of tightening the money supply. On the other hand, the bank was to meet the country’s considerable need for credit, which would speak in favour of adding liquidity. However, a desire to supply more credit to farmers, merchants, timber traders, and others competed with the long-term goal of returning money to par. Indeed, the reason why the road to par became so long and winding has to do with the desire to supply the nation with credit: both the money supply and credit volumes were expanded repeatedly to meet the country’s borrowing needs.

scholarly journals Causality between Money and Prices: Evidence from Pakistan

1998 ◽  
Vol 37 (4II) ◽  
pp. 1155-1161
Author(s):  
Fazal Husain ◽  
Tariq Mahmood
Keyword(s):  
Dominican Republic ◽  
Causal Relationship ◽  
Money Supply ◽  
The Other ◽  
Structural Factors ◽  
Other Hand ◽  
Price Levels ◽  
Effective Instrument ◽  
Direction Of Causation ◽  
The Relationship

The relationship between money and prices has been a debated issue among economic schools of thought particularly between the Monetarists and the Keynesians. The monetarists claim that changes in money stocks cause changes in price levels. In other words, the direction of causation runs from money to prices implying that prices can be controlled through money supply. The keynesians, on the other hand, argue that money is important but is not responsible for changes in price levels. Instead, structural factors play important role suggesting that money supply is not an effective instrument to control price changes. The causal relationship between money and prices has been extensively tested in various countries. For example, Brillembourg and Khan (1979) examined this relationship in USA. Using Sims procedure for the period 1870-1975, they found unidirectional causality running from money to prices. Similar directions of causation are reported by Lee and Li (1983) and Ramachandran and Kamaiah (1992) who investigated the causal relationship in Singapore and India respectively. On the other hand, Aghevli and Khan (1978), while investigating the causal relationship in Brazil, Columbia, the Dominican Republic, and Thailand, found bidirectional causality between money and prices in these countries.

Public Support for the Victims' Rights Movement: Results of a Statewide Survey

1990 ◽  
Vol 36 (4) ◽  
pp. 488-502 ◽  
Author(s):  
Brent L. Smith ◽  
John J. Sloan ◽  
Richard M. Ward
Keyword(s):  
Empirical Evidence ◽  
Sex Education ◽  
Public Support ◽  
The Other ◽  
Other Hand ◽  
Path Analytic ◽  
Victimization Experience

The literature on the victims' rights movement has been largely anecdotal, and little empirical evidence has been produced about who supports victims' rights. This article examines the extent of public support for several programs regularly appearing in proposed victim legislation. Path analytic procedures were used to test variation in support by age, race, sex, education, income, and victimization experience. The results indicate that victimization experience and education were most strongly associated with support for the victims' rights programs examined. Race, on the other hand, was not significantly related to support for victims' rights when other variables were controlled.

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