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On the Impact of Fiscal Policy on Inflation: The Case of Fiscal Rules

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  • Jocelyne Marion Zoumenou

    (CNRS, EconomiX, Université Paris Nanterre, 92001 Nanterre)

Abstract

This paper examines the impact of fiscal rules on inflation across 79 countries from 1985 to 2021, employing entropy balancing as the methodology. Adopting this approach, the study addresses potential endogeneity concerns and considers variations among different country groups, including advanced economies, emerging markets, developing economies, and low-income countries. The primary outcome derived from the analysis indicates a negative relationship between fiscal rules and inflation in emerging and low-income countries. Moreover, this effect is observed for moderate and high inflation rates. These results are robust to different specifications.

Suggested Citation

  • Jocelyne Marion Zoumenou, 2025. "On the Impact of Fiscal Policy on Inflation: The Case of Fiscal Rules," Post-Print hal-04980375, HAL.
    • Handle: RePEc:hal:journl:hal-04980375
    DOI: 10.1515/bejm-2024-0165
    as

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