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Title:The relationship between public balance and inflation in Europe PDF Logo
Authors:Miklós-Somogyi, Patrícia
Balogh, László
Issue Date:2009
Series/Report no.:BERG Working paper series on government and growth 65
Abstract:The study considers some of the factors determining budget balance. In particular, it investigates the relationship between budget balance and inflation. The analysis focuses on European states in the period between 1999 and 2007, and concludes that the relationship between budget balance and inflation is not demonstrable. In the literature, attempts to quantify the relationship between the two factors have faced severe difficulties. Inflation influences both the revenue side and the expenditure side of the budget, often increasing one and reducing the other at the same time. These effects might balance each other out, leaving the budget balance unchanged.
Subjects:budget balance
budget deficit
Document Type:Working Paper
Appears in Collections:BERG Working Paper Series, Universität Bamberg

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