The effect of a budget deficit on inflation: The case of Tanzania
South African Journal of Economic and Management Sciences
| Field | Value | |
| Title | The effect of a budget deficit on inflation: The case of Tanzania | |
| Creator | Solomon, M de Wet, WA | |
| Description | The Tanzanian economy has remained one of the limited numbers of countries that has experienced a relatively high inflation rate, accompanied by high fiscal deficits for a prolonged period in the absence of any hyperinflation. This paper examines the deficit-inflation relationship in the Tanzanian economy and establishes the causal link that runs from the budget deficit to the inflation rate usingcointegration analysis over the period 1967-2001. Some dynamic simulations are done to gauge the effect of a change in the budget deficit and gross domestic product on inflation over time. Due to monetisation of the budget deficit, significant inflationary effects are found for increases in the budget deficit. | |
| Publisher | AOSIS Publishing | |
| Date | 2004-07-23 | |
| Identifier | 10.4102/sajems.v7i1.1431 | |
| Source | South African Journal of Economic and Management Sciences; Vol 7, No 1 (2004); 100-116 2222-3436 1015-8812 | |
| Language | eng | |
| Relation |
The following web links (URLs) may trigger a file download or direct you to an alternative webpage to gain access to a publication file format of the published article:
https://sajems.org/index.php/sajems/article/view/1431/554
|
|
ADVERTISEMENT
