Work

Interconnections between Public Indebtedness and Inflation in Contemporary Economies

Year: 2014

Type: article

Abstract: This paper aims to analyze the specific interconnections established between public indebtedness and inflation, both from the perspective of considering inflation as a result of public borrowing and of voluntarily promoting inflation to reduce the (real) value of public debt and to ease its burden.It identifies the channels through which these effects are occurring, it determines the conditions of their manifestation and evaluates their relevance for different (developed and developing) contemporary economies.Although promoting irrational public borrowing may lead to inflation, such a correlation proved to be quite difficult to identify in the practice, especially for currently developed economies.

Source: Economics & Sociology

DOI: 10.14254/2071-789x.2014/7-4/4

Authors: Irina Bilan, Angela Roman

Institution: Alexandru Ioan Cuza University

Language: English

Topic: Fiscal Policies and Political Economy

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

Open Access status: diamond

Funder: European Social Fund

Awards: G1679186985, G7920777902