Work

Inflation and the Size of Government

Year: 2001

Type: article

Abstract: It is commonly supposed in public and academic discourse that inflation and big government are related. We show that economic theory delivers such a prediction only in special cases. As an empirical matter, inflation is significantly positively related to the size of government mainly when periods of war and peace are compared. We find a weak positive peacetime time series correlation between inflation and the size of government and a negative cross-country correlation of inflation with non-defense spending.

Source: Finance and Economics Discussion Series

DOI: 10.17016/feds.2002.01

Authors: Song Han, Casey B. Mulligan

Institutions: Federal Reserve, Federal Reserve Board of Governors, University of Chicago

Language: English

Topic: Monetary Policy and Economic Impact

Subfield: General Economics, Econometrics and Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDG: Peace, justice, and strong institutions

Open Access status: hybrid

OpenAlex ID: W2152186353

FWCI:

Cites: 48

Cited by: 9

Related to: 10