The inflation adjusted nominal deficit: a note on Robert Barros’s definition

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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Year of publication:	2000
Authors:	Luporini, Viviane
Institutions:	Centro de Desenvolvimento e Planejamento Regional (Cedeplar), Universidade Federal de Minas Gerais
Subject:	inflation adjusted nominal deficit \| Robert Barro \| government deficit

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Extent:	application/msword
Series:	Textos para Discussão Cedeplar-UFMG. - ISSN 2318-2377.
Type of publication:	Book / Working Paper
Notes:	Published in Revista de Economia Política, 2003, vol. 23, n. 1. 15 pages
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005056989