Journal Article

Do budget deficits cause inflation?


Abstract: Keith Sill examines the theory and evidence on the link between fiscal and monetary policy and, thus, between deficits and inflation. Sill concludes that whether deficits lead to inflation depends on the extent to which a country?s monetary policy is independent.

Keywords: Budget deficits; Inflation (Finance);

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Bibliographic Information

Provider: Federal Reserve Bank of Philadelphia

Part of Series: Business Review

Publication Date: 2005

Issue: Q3

Pages: 26-33