标题: Budget Deficit and Inflation [打印本页] 作者: AndyNZ 时间: 2011-7-11 19:47 标题: Budget Deficit and Inflation
Hi,
How is budget deficit related to inflation? Ie. Reducing budget deficit reduces GDP growth.. Why?
Thanks作者: redskins44 时间: 2011-7-11 19:47
pedpenny, yes you are right. It depends on whether the government is reducing the deficit (like you said) which leads to less GDP and less inflation, or whether it is increasing the deficit by borrowing and spending, which leads to more GDP and more inflation.作者: SFoyil 时间: 2011-7-11 19:47
