Deficits and inflation; Are monetary and financial institutions worthy to consider or not?
Institutions are important to analyze the relationship between deficits and inflation. This study examines whether deficits are inflationary or not in the presence of dependent central bank and fragile financial markets. A panel dataset has been used for eleven Asian countries from 1981 to 2010. Est...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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Elsevier
2015-09-01
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| Series: | Borsa Istanbul Review |
| Subjects: | |
| Online Access: | http://www.sciencedirect.com/science/article/pii/S2214845015000149 |
| _version_ | 1811252506301300736 |
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| author | Tahira Ishaq Hassan M. Mohsin |
| author_facet | Tahira Ishaq Hassan M. Mohsin |
| author_sort | Tahira Ishaq |
| collection | DOAJ |
| description | Institutions are important to analyze the relationship between deficits and inflation. This study examines whether deficits are inflationary or not in the presence of dependent central bank and fragile financial markets. A panel dataset has been used for eleven Asian countries from 1981 to 2010. Estimation results from system GMM show that deficits are inflationary for selected sample, while inflationary pressure of budget deficits is particularly stronger when financial markets are not fully developed and central banks are not free to follow their goals and objectives. |
| first_indexed | 2024-04-12T16:36:39Z |
| format | Article |
| id | doaj.art-6bc80b05127945ba92bcfee64895aa2c |
| institution | Directory Open Access Journal |
| issn | 2214-8450 |
| language | English |
| last_indexed | 2024-04-12T16:36:39Z |
| publishDate | 2015-09-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Borsa Istanbul Review |
| spelling | doaj.art-6bc80b05127945ba92bcfee64895aa2c2022-12-22T03:24:59ZengElsevierBorsa Istanbul Review2214-84502015-09-0115318019110.1016/j.bir.2015.03.002Deficits and inflation; Are monetary and financial institutions worthy to consider or not?Tahira IshaqHassan M. MohsinInstitutions are important to analyze the relationship between deficits and inflation. This study examines whether deficits are inflationary or not in the presence of dependent central bank and fragile financial markets. A panel dataset has been used for eleven Asian countries from 1981 to 2010. Estimation results from system GMM show that deficits are inflationary for selected sample, while inflationary pressure of budget deficits is particularly stronger when financial markets are not fully developed and central banks are not free to follow their goals and objectives.http://www.sciencedirect.com/science/article/pii/S2214845015000149Fiscal deficitsInflationInstitutionsCentral bank independenceFinancial markets development |
| spellingShingle | Tahira Ishaq Hassan M. Mohsin Deficits and inflation; Are monetary and financial institutions worthy to consider or not? Borsa Istanbul Review Fiscal deficits Inflation Institutions Central bank independence Financial markets development |
| title | Deficits and inflation; Are monetary and financial institutions worthy to consider or not? |
| title_full | Deficits and inflation; Are monetary and financial institutions worthy to consider or not? |
| title_fullStr | Deficits and inflation; Are monetary and financial institutions worthy to consider or not? |
| title_full_unstemmed | Deficits and inflation; Are monetary and financial institutions worthy to consider or not? |
| title_short | Deficits and inflation; Are monetary and financial institutions worthy to consider or not? |
| title_sort | deficits and inflation are monetary and financial institutions worthy to consider or not |
| topic | Fiscal deficits Inflation Institutions Central bank independence Financial markets development |
| url | http://www.sciencedirect.com/science/article/pii/S2214845015000149 |
| work_keys_str_mv | AT tahiraishaq deficitsandinflationaremonetaryandfinancialinstitutionsworthytoconsiderornot AT hassanmmohsin deficitsandinflationaremonetaryandfinancialinstitutionsworthytoconsiderornot |