Test the relationship between budget deficit and inflation rate In the Iraqi economy | ||
| Al Kut Journal of Economics Administrative Sciences | ||
| Article 1, Volume 0, Issue 16, May 2018, Pages 65-84 | ||
| Abstract | ||
| Abstract The study tries to find the relationship between budget deficit and inflation rate in the oil developing economy . This relationship disgust broad arguably among economists in recent times , and it have been in opposite directions. Supporters of theorem finance theory , which based on the arguments of Keynes, and called by traditional theorem . It see that budget deficit have inflationary effects , and upon moving causal it to the inflation rate. The other direction, the theorists of monetary theory , which is based on the arguments of Friedman ( modern theory ) and see that inflation is causing the budget deficit .It Uses data on Iraqi economy as a case study. By analysis using Granger causality and co - integration model for the period ( 1980-2011 ) | ||
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