Template-Type: ReDIF-Paper 1.0 
Author-Name: Jose Pablo Barquero-Romero 
Author-Name-First: Jose Pablo 
Author-Name-Last: Barquero-Romero
Author-Email: barquerorj@bccr.fi.cr 
Author-Workplace-Name: Department of Economic Research, Central Bank of Costa Rica 
Author-Name: Kerry Loaiza-Marín 
Author-Name-First: Kerry 
Author-Name-Last: Loaiza-Marín 
Author-Email: loaizamk@bccr.fi.cr 
Author-Workplace-Name: Department of Economic Research, Central Bank of Costa Rica 
Title: Inflation and Public Debt
Abstract: This paper aims to determine if a deterioration in public finances, understood as an increase in public debt, tends to increase inflation. We study the relationship between public debt, economic growth, money supply growth and inflation. To do this we follow the methodology proposed by Kwon, McFarlane and Robinson (2009), who perform a panel data estimation using a sample of net debtor´s countries. We find that for countries who already have a high level of public debt, further increases in public debt are inflationary. ***Resumen: Esta investigación busca determinar si un deterioro de las finanzas públicas, en la forma de un mayor crecimiento de la deuda pública, tiende a incrementar la inflación. Se estudian los efectos de cambios e interrelaciones entre la deuda pública, el crecimiento del dinero, el crecimiento económico y la inflación, siguiendo la metodología utilizada por Kwon, McFarlane y Robinson (2009), mediante un conjunto de datos de panel para una muestra de países considerados deudores netos. Se encuentra que para países que poseen un alto nivel de deuda pública sus incrementos son inflacionarios.
Length: 48 pages 
Creation-Date: 2019-07
Publication-Status: Published  
File-URL: https://repositorioinvestigaciones.bccr.fi.cr/handle/20.500.12506/110
File-Format: Application/pdf 
Number: 1701
Classification-JEL: E60, E63 
Keywords: Fiscal policy; Monetary policy, Política Fiscal, Política monetaria
Handle: RePEc:apk:doctra:1701