On Budget Deficits as a Major Cause of Inflation: A Reply

1979 ◽  
Vol 7 (3) ◽  
pp. 387-390
Author(s):  
Ansel M. Sharp

This article analyzes a recent attempt to test the hypothesis that budget deficits are a major cause of inflation. It finds that the proposed tests are inappropriate for several reasons; chiefly that there is a reverse causation phenomena present for economies with nonindexed progressive tax systems.

2021 ◽  
Vol 14 (2) ◽  
pp. 40-55
Author(s):  
Orkhan Nadirov ◽  
Bruce Dehning ◽  
Drahomira Pavelkova
Keyword(s):  

1988 ◽  
Vol 35 (2) ◽  
pp. 297 ◽  
Author(s):  
Jacob A. Frenkel ◽  
Assaf Razin
Keyword(s):  

2016 ◽  
Vol 56 ◽  
pp. 262-273 ◽  
Author(s):  
József Pántya ◽  
Judit Kovács ◽  
Christoph Kogler ◽  
Erich Kirchler

2007 ◽  
pp. 4-27 ◽  
Author(s):  
V. Polterovich ◽  
V. Popov ◽  
A. Tonis

This paper compares various mechanisms of resource curse leading to a potentially inefficient use of resources; it is demonstrated that each of these mechanisms is associated with market imperfections and can be "corrected" with appropriate government policies. Empirical evidence seems to suggest that resource abundant countries have on average lower budget deficits and inflation, and higher foreign exchange reserves. Besides, lower domestic fuel prices that are typical for resource rich countries have a positive effect on long-term growth even though they are associated with losses resulting from higher energy consumption. On top of that resource abundance allows to reduce income inequalities. So, on the one hand, resource wealth turns out to be conducive to growth, especially in countries with strong institutions. However, on the other hand, resource abundance leads to corruption of institutions and to overvalued real exchange rates. On balance, there is no solid evidence that resource abundant countries grow more slowly than the others, but there is evidence that they grow more slowly than could have grown with the right policies and institutions.


Author(s):  
Helena Borzenko ◽  
Tamara Panfilova ◽  
Mikhail Litvin

Purpose articles rassm and experience and benefits systems taxation countries European Union, manifestation iti the main limitations domestic taxlegislation and wired STI their comparisons. In general iti ways the provisiontax reporting countries Eurozone in the appropriate organs, dove STI need theintroduction Ukraine electronic methods receiving and processing such reports.define iti key directions reforming domestic tax legislation. Methodology research is to use aggregate methods: dialectical, statistical, historical, comparative. Scientific novelty is to are provided recommendations for improvement ofefficiency systems taxation of our states in international ratings characterizingtax institutions country. Therefore, despite some problems in legislation heldcomparative study systems taxation EU and Ukraine. Conclucions Coming fromof this, the main directions reforming tax systems Ukraine, in our opinion,today should become: improvement process administration, reduce scales evasiontaxes, provision more uniform distribution tax burden between taxpayers, themaximum cooperation tax bodies different levels as well adjustment systemselectronic interactions tax authorities and payers, tax system must contain ascan less unfounded benefits, consistent with the general by politics pricing.


Author(s):  
Thomas J. Sargent

This collection of essays uses the lens of rational expectations theory to examine how governments anticipate and plan for inflation, and provides insight into the pioneering research for which the author was awarded the 2011 Nobel Prize in economics. Rational expectations theory is based on the simple premise that people will use all the information available to them in making economic decisions, yet applying the theory to macroeconomics and econometrics is technically demanding. This book engages with practical problems in economics in a less formal, noneconometric way, demonstrating how rational expectations can satisfactorily interpret a range of historical and contemporary events. It focuses on periods of actual or threatened depreciation in the value of a nation's currency. Drawing on historical attempts to counter inflation, from the French Revolution and the aftermath of World War I to the economic policies of Margaret Thatcher and Ronald Reagan, the book finds that there is no purely monetary cure for inflation; rather, monetary and fiscal policies must be coordinated. This fully expanded edition includes the author's 2011 Nobel lecture, “United States Then, Europe Now.” It also features new articles on the macroeconomics of the French Revolution and government budget deficits.


CFA Digest ◽  
2010 ◽  
Vol 40 (2) ◽  
pp. 66-67
Author(s):  
Jonathan Wheeler Hubbard

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