Budget Deficits and Inflation: Evidence from Turkey
The Macrotheme Review, cilt.3, sa.8, ss.12-22, 2014 (Hakemli Dergi)
- Yayın Türü: Makale / Tam Makale
- Cilt numarası: 3 Sayı: 8
- Basım Tarihi: 2014
- Dergi Adı: The Macrotheme Review
- Derginin Tarandığı İndeksler: Index Copernicus
- Sayfa Sayıları: ss.12-22
- Hacettepe Üniversitesi Adresli: Evet
Özet
This study attempts to investigate the presence of causality between budget deficits and
inflation rate. For this purpose, Granger-causality tests are employed on monthly budget
deficit and inflation data of Turkey which covers two sub-periods namely, (1987:M1-
2003:M6) and (2005:M1-2013:M6). The results indicate a positive significant causality
running from budget deficits to inflation rate during the high inflation period (1987:M1-
2003:M6). This causal link disappears during the low inflation period (2005:M1-
2013:M6).