Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/250292 
Year of Publication: 
2020
Series/Report no.: 
CREDIT Research Paper No. 20/02
Publisher: 
The University of Nottingham, Centre for Research in Economic Development and International Trade (CREDIT), Nottingham
Abstract: 
Previous research has found that the relationship between fiscal deficits and inflation is conditional on income levels: deficits tend to be inflationary in developing countries but not in advanced economies. We show that within low-income countries (LICs) the relationship is again conditional: only when relatively poor institutions fail to hold governments accountable to the general public are fiscal deficits inflationary in LICs.
Subjects: 
Fiscal deficits
Inflation
Government accountability
JEL: 
E31
H62
O23
Document Type: 
Working Paper

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