Fiscal Deficit and Inflation: An empirical analysis for India

Aviral Tiwari and A. P. Tiwari ()
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A. P. Tiwari: Department of Economics, Vidyant Hindu College, University of Lucknow, Lucknow

Romanian Economic Journal, 2011, vol. 14, issue 42, 131-158

Abstract: This study examines the linkage between fiscal deficit and inflation in India. The main objective of this study is to examine the factors that are responsible for increasing fiscal deficit in India, by taking into account all factors that can affect the status of fiscal deficit. The study finds that inflation is not at all cause of fiscal deficit. However, government expenditure and money supply are found to be important determinants of mounting fiscal deficit.

Keywords: Budget Deficit; Inflation; Money supply. (search for similar items in EconPapers)
JEL-codes: C12 E31 E51 H62 (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:rej:journl:v:14:y:2011:i:42:p:131-158

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