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Measurement of Fiscal Impact: Methodological Issues: Measurement of Fiscal Impact No 59 (International Monetary Fund Occasional Paper)

International Monetary Fund




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 | #4514717 in eBooks |  1988-06-16 |  1988-06-16 | File type: PDF

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This paper examines the methodological issues in the measurement of fiscal impact. The paper analyzes the effects of inflation on the measurement of fiscal deficits. It highlights that inflation affects government revenue and expenditure in different ways; as a consequence, it generally changes the size of the fiscal deficit. An increase in the rate of expected inflation can lead to quick and dramatic increases in nominal interest expenditure when the domestic public deb...

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