Economics & Sociology
ISSN: 2071-789X eISSN: 2306-3459 DOI: 10.14254/2071-789XIndex PUBMS: f5512f57-a601-11e7-8f0e-080027f4daa0
Article information
| Title: | Interconnections between Public Indebtedness and Inflation in Contemporary Economies |
| Issue: |
Vol. 7, No 4, 2014
Published date: 20-11-2014 (print) / 20-11-2014 (online) |
| Journal: |
Economics & Sociology
ISSN: 2071-789X, eISSN: 2306-3459 |
| Authors: |
Irina Bilan
Angela Roman |
| Keywords: | public indebtedness, inflation, money supply, debt amortization |
| DOI: | 10.14254/2071-789X.2014/7-4/4 |
| Index PUBMS: | 1fd319a2-aa13-11e7-8eae-080027f4daa0 |
| Language: | English |
| Pages: | 59-70 (12) |
| JEL classification: | E31, E51, H63 |
| Website: | https://www.economics-sociology.eu/?296,en_interconnections-between-public-indebtedness-and-inflation-in-contemporary-economies |
Abstract
This paper aims to analyze the specific interconnections established between public indebtedness and inflation, both from the perspective of considering inflation as a result of public borrowing and of voluntarily promoting inflation to reduce the (real) value of public debtand to ease its burden. It identifies the channels through which these effects are occurring, it determines the conditions of their manifestation and evaluates their relevance for different (developed and developing) contemporary economies. Although promoting irrational public borrowing may lead to inflation, such a correlation proved to be quite difficult to identify in the practice, especially for currently developed economies.