TY  - Report

AU  - Hemantha K.J Ekanayake



PY  - 2012
T1  - The link between fiscal deficit and inflation: do public sector wages matter?
PB  - Crawford School of Public Policy


DO  - https://doi.org/APO-31022
UR  - https://apo.org.au/node/31022

AB  - 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.
ER  -