
BOOK
Deficits, debt financing, monetary policy and inflation in developing countries: Internal or external factors? [An article from: Journal of Asian Economics]
A. Kia
$10.95
About this product:
This digital document is a journal article from Journal of Asian Economics, published by Elsevier in 2006. The article is delivered in HTML format and is available in your Amazon.com Media Library immediately after purchase. You can view it with any web browser.
Description:
This paper focuses on internal and external factors which influence the inflation rate in developing countries. A monetary model of inflation rate, capable of incorporating both monetary and fiscal policies as well as other internal and external factors, was developed and tested on Iranian data. It was found that, over the long run, a higher exchange rate leads to a higher price and that the fiscal policy is very effective to fight inflation. The major factors affecting inflation in Iran, over the long run, are internal rather than external. However, over the short run, the sources of inflation are both external and internal.