Inflation and the size of government

Song Han and Casey Mulligan

No 2002-1, Finance and Economics Discussion Series from Board of Governors of the Federal Reserve System (U.S.)

Abstract: It is commonly supposed in public and academic discourse that inflation and big government are related. We show that economic theory delivers such a prediction only in special cases. As an empirical matter, inflation is significantly positively related to the size of government mainly when periods of war and peace are compared. We find a weak positive peacetime time series correlation between inflation and the size of government and a negative cross-country correlation of inflation with non-defense spending.

Keywords: Inflation; (Finance) (search for similar items in EconPapers)
Date: 2002
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Citations: View citations in EconPapers (1)

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Related works:
Journal Article: Inflation and the size of government (2008)
Working Paper: Inflation and the Size of Government (2001)
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