Government Budget Deficit and Inflationary Process in Ethiopia
| dc.contributor.advisor | Mulat, Teshome(Dr.) | |
| dc.contributor.author | Getachew, Demirew | |
| dc.date.accessioned | 2021-07-28T06:50:04Z | |
| dc.date.accessioned | 2023-11-04T10:30:34Z | |
| dc.date.available | 2021-07-28T06:50:04Z | |
| dc.date.available | 2023-11-04T10:30:34Z | |
| dc.date.issued | 1998-06 | |
| dc.description.abstract | The main objective of the study is to examine the causal relation ship between the budget deficit, money supply and inflation in Ethiopia using the Aghevli and Khan (1978) model using Ethiopian data obtained from Ministry of Finance, Ministry of Economic Development and Co-operation and National Bank of Ethiopia. The main findings of the study are: The existence of lag structure in the government budgetary mechanism caused a two way causation between money supply and inflation. The monetarist paradigm of sustained inflation resulting from budgetary deficit financing by money creation has been empirically confirmed. In the long-run supply factors have been found to have a significant influence in the determination of inflation. Due to the effect of government borrowing and external influence, the Central Bank is unable to conduct an independent monetary policy The policy implication of the result of the study is that without implementing effective fiscal policy, it is difficult to realize macroeconomic stability and economic development. This includes, among others, eliminating budget deficit, reducing time lags in tax collection, strengthening fiscal discipline and accountability in the use of public fund. Fiscal prudence and effectiveness are also indicated in improved tax performance and efficiency in tax administration. It is also necessary to reform the National Bank of Ethiopia and its operations so that it is empowered to exercise independent monetary policy. | en_US |
| dc.identifier.uri | http://etd.aau.edu.et/handle/123456789/27405 | |
| dc.language.iso | en | en_US |
| dc.publisher | A.A.U | en_US |
| dc.subject | Deficit and Inflationary Process in Ethiopia | en_US |
| dc.subject | Government Budget | en_US |
| dc.title | Government Budget Deficit and Inflationary Process in Ethiopia | en_US |
| dc.type | Thesis | en_US |