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

Ansel M. Sharp
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Ansel M. Sharp: Oklahoma State University

Public Finance Review, 1979, vol. 7, issue 3, 387-390

Abstract: 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.

Date: 1979
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Persistent link: https://EconPapers.repec.org/RePEc:sae:pubfin:v:7:y:1979:i:3:p:387-390

DOI: 10.1177/109114217900700310

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