Inflation adjusted nominal deficit : a note on Robert barro's definition
By: LUPORINI, Viviane.
Material type: ArticlePublisher: 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 termsThis 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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