The relationship between public balance and inflation in Europe

Faculty/Professorship: Public Economics  
Author(s): Miklós-Somogyi, Patrícia; Balogh, László
Editors: Wenzel, Heinz-Dieter ; Stübben, Felix
Corporate Body: BERG (Bamberg Economic Research Group)
Publisher Information: Bamberg : opus
Year of publication: 2014
Pages: 23 ; Diagramme
Series ; Volume: BERG working paper series ; 65 
Source/Other editions: zuerst erschienen im BERG-Verlag, 2009
Year of first publication: 2009
Language(s): English
Licence: German Act on Copyright 
URN: urn:nbn:de:bvb:473-opus4-33381
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.
Keywords: budget balance, budget deficit, inflation
Type: Workingpaper
Year of publication: 8. September 2014

File SizeFormat  
BERG_65_Baloghse_A2b.pdf289.78 kBPDFView/Open