ScholarLens Back to search
1991•Applied EconomicsRequires access

Budget deficit and inflation: the Peruvian experience

Munir A. S. Choudhary, Amar K. Parai

Open publisher page 31 citations

Abstract

The purpose of this paper is to investigate the role of huge budget deficits in Peru's near-hyperinflation during recent years. We use the rational expectations macro model of inflation to find out effect of the anticipated budget deficits on inflation rates by using the quartely data of Peru for the period 1973:1 to 1988:1. Our major finding has been that the budget deficits as well as the rate of growth of money supply do have significant impact on the inflation rates in Peru.

About this research paper

What this paper is about

The purpose of this paper is to investigate the role of huge budget deficits in Peru's near-hyperinflation during recent years. We use the rational expectations macro model of inflation to find out effect of the anticipated budget deficits on inflation rates by using the quartely data of Peru for the period 1973:1 to 1988:1. Our major finding has been that the budget deficits as well as the rate of growth of money supply do have significant impact on the inflation rates in Peru.

Why it matters

OpenAlex reports 31 citations for this work. Citation counts describe recorded attention and do not establish research quality.

Key contribution

A contribution statement is not available in the OpenAlex record.

Method / approach

Method details are not available in the OpenAlex metadata.

Main findings

Findings are not separately available in the OpenAlex metadata.

Limitations

Limitations are not available in the OpenAlex metadata.

Applications

Application details are not available in the OpenAlex metadata.

Available abstract

The purpose of this paper is to investigate the role of huge budget deficits in Peru's near-hyperinflation during recent years. We use the rational expectations macro model of inflation to find out effect of the anticipated budget deficits on inflation rates by using the quartely data of Peru for the period 1973:1 to 1988:1. Our major finding has been that the budget deficits as well as the rate of growth of money supply do have significant impact on the inflation rates in Peru.

Key concepts: Economics, Inflation (cosmology), Deficit spending, Hyperinflation, Macro, Macroeconomics, Monetary economics, Money supply

Related papers

Related paper 1Related paper 2Related paper 3
Back to paper searchBrowse research topicsOriginal source
Budget deficit and inflation: the Peruvian experience — Research Paper | ScholarLens