Nonlinear Effects of Inflation on Budget Deficit and Debt Outstanding

  • Sergey Pekarski HSE University, 20, Myasnitskaya ul., Moscow, 101000, Russia
Keywords: budget deficit, inflation, public debt, inflation model

Abstract

This paper examines the effects of inflation on the budget deficit, demand for real money balances, and debt outstanding. Following Drazen (1985), Bruno-Fischer (1990), Smirnov (1997) and others, a simple model demonstrates nonlinear effects and bifurcation of inflation in the system, describing steady state budget deficit finance in high-inflation economies. 

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Published
2000-01-11
How to Cite
PekarskiS. (2000). Nonlinear Effects of Inflation on Budget Deficit and Debt Outstanding. HSE Economic Journal, 4(3), 309-332. Retrieved from https://ej.hse.ru/article/view/29665
Issue
Vol 4 No 3 (2000): HSE Economic Journal
Section
Untitled section