Budget Deficit, Money Growth and Inflation: Evidence from the Colombian Case

Borradores de Economia
Número: 
537
Publicado: 
Clasificación JEL: 
H62, E51, E31, C12
Palabras clave: 
Deficit, Money supply, Inflation, Hypothesis testing

Lo más reciente

Jhorland Ayala-García, Yesica Tatiana Lara-Silva, Alejandro Alberto Vargas-Villamil, Lina Romero-Chaparro
Jesús Alonso Botero-García, Ligia Alba Melo-Becerra, Cristian Castrillón Gaviria, Daniela Gallo

Evidence of the causal long-term relationship between budget deficit, money growth and inflation in Colombia is analyzed in this paper, considering the standard (M1), the narrowest (M0-Base) and the broadest (M3) definitions of money supply. Using a vecto