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Komulainen, Tuomas; Pirttilä, Jukka

doi:10.1023/a:1022491613255

Cited by 15 publications

(3 citation statements)

References 13 publications

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“…They suggest that fiscal deficits have an important role on the inflation for these countries. Thus, Komulainen and Pirttilä [49] investigate the price stability for three transition economies (Bulgaria, Romania and Russia) using vector-autoregressive models. Empirical evidences indicate that fiscal deficits have an important role on the inflation in Bulgaria and Romania except for Russia.…”

Section: Literature Reviewmentioning

confidence: 99%

Revisit the Budget Deficits and Inflation: Evidence from Time and Frequency Domain Analyses

Tiwari¹,

Bolat²,

Koçbulut³

2015

TEL

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The purpose of this paper is to test the relationship between budget deficits and inflation for nine EU countries during the period of 1990-2013 using the quarterly data. Recently, the public deficits and inflation have had an increasing importance for developing/emerging and developed countries to build the stability macroeconomic performance in the long run. This study is the first attempt to determine the relationship between the inflation and budget deficits for nine EU countries using different bootstrap causality tests. We employ the bootstrap causality and Granger causality test in the frequency domain analysis which allows us to distinguish short and long-run causality. We do not find a relationship between these variables when we employ bootstrap causality analysis. While the frequency domain causality shows that there is no relationship causality from budget deficits to inflation for all countries, causality from inflation to budget deficits indicates a permanent (long-run) relationship for Belgium, and France.

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Section: Literature Reviewmentioning

confidence: 99%

Revisit the Budget Deficits and Inflation: Evidence from Time and Frequency Domain Analyses

Tiwari¹,

Bolat²,

Koçbulut³

2015

TEL

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“…The well-known monetarist argument that links inflation to money supply by Friedman (1956) is the most popular approach that is proved in many studies (Komulainen and Pirttila, 2002;Grauwe and Polan, 2005). However, there are many other mechanisms scrutinized in the literature.…”

Section: Introductionmentioning

confidence: 99%

Investigating the Determinants of Inflation: A Panel Data Analysis

Deniz¹,

Tekçe²,

Yilmaz³

2016

International Journal of Financial Research

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Maintaining price stability is the main objective of central banks all over the world. Each central bank requires a unique monetary policy rule as the characteristics and structure of each economy is idiosyncratic. Economic diversities necessitate special efforts, however, theories emerged from former experiences worldwide led to generalizations of some monetary policies neglecting the differences between industrialized and emerging economies. This paper studies how inflation rates of inflation targeting (IT) and non-inflation targeting (non-IT) emerging and industrial economies are affected with the determinants as money growth, real effective exchange rate, budget balance, GDP growth, real wages and output gap using static and dynamic panel data analysis for the period 2002-2012. Decomposing the determinants of inflation rate enables to investigate the existence of several transmission mechanisms for emerging and industrial economies.

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“…Few empirical studies have evaluated the presence of FD or MD in developing countries. Komulainen and Pirttilä (2002) employed a VAR technique to test the FTPL in Bulgaria, Romania and Russia. They concluded that fiscal factors influence inflation, but monetary factors predominantly determine inflation in the 3 countries they examined.…”

Section: Literature Reviewmentioning

confidence: 99%

Public debt, inflation, and the Fiscal Theory of Price Level in emerging markets: the case of Paraguay

Urquhart

2021

Macroeconomics and Finance in Emerging Market Economies

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This paper investigates the link between public debt and inflation considering the Fiscal Theory of Price Level (FTPL) with data from Paraguay. Unlike other studies, the paper also considers this relationship according to the monetary regime. The fiscal policy actions are evaluated in a monetary structural vector autoregressive combined with fiscal variables and interpreted using impulse responses. The results highlight the importance of differentiating the monetary regime while conducting the analysis. In the monetary aggregate regime with an active fiscal policy, higher public debt shocks produce inflationary pressures. Conversely, with the inflation targeting sample estimation, inflation follows its targeted path.

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Cited by 15 publications

References 13 publications

Revisit the Budget Deficits and Inflation: Evidence from Time and Frequency Domain Analyses

Revisit the Budget Deficits and Inflation: Evidence from Time and Frequency Domain Analyses

Investigating the Determinants of Inflation: A Panel Data Analysis

Public debt, inflation, and the Fiscal Theory of Price Level in emerging markets: the case of Paraguay

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