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Finance and Economics Discussion Series: Inflation and the Size of Government

by Song Han , Casey B. Mulligan , United States Federal Reserve Board
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Current price ₹1,440.00
Original price ₹1,544.00
Original price ₹1,544.00
Original price ₹1,544.00
(-7%)
₹1,440.00
Current price ₹1,440.00

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Book cover type: Paperback
  • ISBN13: 9781288715992
  • Binding: Paperback
  • Subject: N/A
  • Publisher: Bibliogov
  • Publisher Imprint: Bibliogov
  • Publication Date:
  • Pages: 48
  • Original Price: USD 15.75
  • Language: English
  • Edition: N/A
  • Item Weight: 105 grams
  • BISAC Subject(s): General

It is commonly supposed in public and academic discourse that inflation and big government are related. We show that economic theory delivers such a prediction only in special cases. As an empirical matter, inflation is significantly positively related to the size of government mainly when periods of war and peace are compared. We find a weak positive peacetime time series correlation between inflation and the size of government and a negative cross-country correlation of inflation with non-defense spending.

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