Does the Mode of Financing the Budget deficit Matter for Inflation? The Case of the Gambia

Musa Sannoh () and Momodou Mustapha Fanneh ()
Additional contact information
Musa Sannoh: University of the Gambia
Momodou Mustapha Fanneh: University of the Gambia

Technium Social Sciences Journal, 2022, vol. 31, issue 1, 362-370

Abstract: This study examines whether the mode of financing budget deficit matter for inflation, the case of the Gambia. We are able to identify five instruments that are used for budget deficit financing in the Gambia namely: broad money growth, gross capital formation, official exchange rate and current account balance. We excluded donor fund because it is not a reliable sources of government revenue. The study employed Vector Error Correction Model and Granger Causality to determine the short-run, long-run and causality relationships of the variables respectively. We are able to ascertain that all the selected mode of budget deficit financing adapted by The Gambia have both short-run and long-run Significant impact on Inflation rate between 1970-2020. Notably, broad money growth that is considered to be influenced by state printing of money or the money market is the key mode of budget deficit financing in The Gambia and has high significant impact on Inflation.

Keywords: Budget Deficit; Inflation; VECM; Granger Causality; Gambia (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://techniumscience.com/index.php/socialsciences/article/view/6258 (application/pdf)
https://techniumscience.com/index.php/socialsciences/article/view/6258/2296 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:tec:journl:v:31:y:2022:i:1:p:362-370

Access Statistics for this article

Technium Social Sciences Journal is currently edited by Tasente Tanase

More articles in Technium Social Sciences Journal from Technium Science
Bibliographic data for series maintained by Tasente Tanase ( this e-mail address is bad, please contact ).