Are budget deficits inflationary? A cointegration approach

This paper investigates the direct and indirect effects of budget deficit on inflation in Greece for the period 1957-93. The empirical analysis employs tests of cointegration, as suggested by Johansen and Juselius, as pretests for Granger tests of causality. The empirical evidence suggests that the indirect effects of budget deficits on inflation exist while the direct effects are not present.

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Year of publication:	1997
Authors:	Hondroyiannis, George ; Papapetrou, Evangelia
Published in:	Applied Economics Letters. - Taylor & Francis Journals, ISSN 1350-4851. - Vol. 4.1997, 8, p. 493-496
Publisher:	Taylor & Francis Journals

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Extent:	text/html
Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10009213354