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Inflation adjusted nominal deficit : a note on Robert barro's definition

By: LUPORINI, Viviane.
Material type: materialTypeLabelArticlePublisher: São Paulo : Editora 34, jan./mar. 2003Revista de Economia Política = Brazilian Journal of Political Economy 23, 1, p. 149-153Abstract: This note discusses the concept of ‘inflation adjusted nominal deficit’ proposed by Robert Barro in light of a stock-flow consistent real deficit. It is argued that the calculation proposed by the author violates the principle of stock-flow consistency and leads one to the erroneous interpretation that a rise in the rate of inflation decreases the government deficit in nominal terms
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This note discusses the concept of ‘inflation adjusted nominal deficit’ proposed by Robert Barro in light of a stock-flow consistent real deficit. It is argued that the calculation proposed by the author violates the principle of stock-flow consistency and leads one to the erroneous interpretation that a rise in the rate of inflation decreases the government deficit in nominal terms

Revista de Economia Política

Janeiro-Março 2003

v. 23, n. 1(89)

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