Analytics in Finance and Risk Management

18 Effect of the general government fiscal deficit on the inflation rate OECD countries with the upper middle income

Semra Aydoğdu Bağci

DOI: 10.1201/9780367854690-18

1 Introduction

The phenomenon of inflation is a dilemma that is difficult to be solved in many countries, especially in developing countries. This study examines the effect of fiscal deficit (FD) and GDP on IR. In this study, the effects of the FD, GDP, and expansionary money supply (MS) on the IR are investigated by utilizing the obtained data over the period 1990–2020 for Colombia, Costa Rica, Mexico, and Turkey, which are among the upper middle-income countries of the OECD country group. The objective of the research is to examine whether the FD, especially those upper middle-income ...