%T The link between fiscal deficit and inflation: do public sector wages matter?
%A Hemantha K.J Ekanayake



%I Crawford School of Public Policy
%D 2012

%K Taxation, %K Wages



%U https://apo.org.au/node/31022

%X This paper investigates the validity of the hypothesis that suggests there is a link between fiscal deficits and inflation in developing countries and further explores this link in the absence of public sector wage expenditure.
Sri Lanka, a developing country with a persistent fiscal deficit, a large public sector and increasing inflation, has been chosen for the empirical study. An auto-regressive distributed lag (ARDL) model is employed in the analysis, using annual data from 1959 to 2008.
%9 Report