Fiscal Deficit and Inflation: Evidence from the Nigerian Economy
Keywords:
Inflation, fiscal deficit, fiscal theory of price level, fiscal policy
Abstract
This study investigated the complex relationship between fiscal deficits and inflation in Nigeria, examining their short-run dynamics, long-run equilibrium, and causal relationships. Using an Autoregressive Distributed Lag (ARDL) model and Granger causality testing, the research revealed several significant findings. In the short run, inflation demonstrated strong persistence, with past inflation values significantly influencing current levels. Fiscal deficits, particularly at their second lag, showed a positive impact on inflation, while real GDP and exchange rate stability exhibited deflationary effects. The error correction term indicated rapid adjustment to long-run equilibrium, highlighting effective fiscal and monetary coordination. Long-run analysis revealed a significant negative relationship between fiscal deficits and inflation, suggesting that disciplined fiscal policies could contribute to price stability over time. The money supply rate showed a positive long-term impact on inflation, consistent with classical monetary theory. Real GDP and exchange rates maintained their deflationary effects in the long run, serving as stabilizing factors in the Nigerian economy. Granger causality tests demonstrated unidirectional causality from fiscal deficits to inflation, establishing fiscal deficits as a predictor of inflation in Nigeria, though the reverse relationship was not significant. Based on these findings, the study recommends enhancing fiscal management through stronger deficit control measures and fiscal consolidation policies. This includes improved budgetary management, prioritized productive spending, and reduced reliance on borrowing. Additionally, the research emphasizes the importance of strengthening monetary and exchange rate policies, suggesting that maintaining exchange rate stability and controlling money supply growth are crucial for managing inflation. These recommendations aim to support price stability and mitigate inflationary pressures in Nigeria's developing economy.
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References
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Adediji, A. M., & Adesanya, B. M. (2023). Budget deficit financing options and inflationary pressure in Nigeria . Nigerian Defence Academy Journal of Economics and Finance, 7(3).
Akpan, E., & Ekong, C. N. (2023). Fiscal deficits and inflation in Nigeria. International Journal of Academic Accounting, Finance & Management Research(IJAAFMR), 7(1), 42–58.
Alam, Md. M., Sadekin, Md. N., & Saha, S. K. (2020). The impact of macroeconomic variables on the budget deficit in Bangladesh: an econometric analysis. South Asian Journal of Business Studies, ahead-of-print(ahead-of-print). https://doi.org/10.1108/sajbs-05-2020-0141
Andoni, M., & Osmani, M. (2017). Assessment of Relationship Between Inflation, Growth and Fiscal Deficit in Albania-An Econometric Approach. European Scientific Journal, ESJ, 13(13), 137. https://doi.org/10.19044/esj.2017.v13n13p137
Barro, R. J. (1974). Are government bonds net wealth? Journal of Political Economy, 82(6), 1095–1117. https://doi.org/10.1086/260266
Barro, R., & Sala, X. (2004). Economic growth. The Mit Press.
Batool, I., Chandia, K. E., Sarwar, B., & Iqbal, M. B. (2022). Fiscal Dominance and the Inflation Dynamics in Pakistan: An Empirical Analysis. Millennial Asia, 15(1), 097639962211030. https://doi.org/10.1177/09763996221103003
Bayir, M., & Güvenoğlu, R. A. H. (2020). The analysis of relationship between the money supply, budget deficit and inflation in Turkey: 2009-2019. . In ICOAEF’20, VII International Conference on Applied Economics and Finance August 21-22, 2020/Izmir–Turkey.
Blanchard, O. (2019). Public debt and low interest rates. American Economic Review, 109(4), 1197–1229. https://doi.org/10.1257/aer.109.4.1197
Blanchard, O. J. (1990). OECD economics department working papers. OECD Economics Department Working Papers No. 79. https://doi.org/10.1787/18151973
Blanchard, O., & Johnson, D. R. (2017). Macroeconomics (7th ed.). Pearson.
Bolhuis, M. (2024). Fiscal r-star: Fiscal-Monetary tensions and implications for policy. IMF Working Paper, 2024(174), 1–1. https://doi.org/10.5089/9798400282126.001
Boyle, M. (2021). Know what causes inflation and who profits from it. Investopedia. https://www.investopedia.com/ask/answers/111314/what-causes-inflation-and-does-anyone-gain-it.asp
Bulawayo, M. , Chibwe, F., & Seshamani, V. (2018). The impact of budget deficits on inflation in Zambia. Journal of Economics and Development Studies, 6(2), 13–23.
Carlin, W., & Soskice, D. W. (2015). Macroeconomics : institutions, instability, and the financial system. Oxford University Press, Cop.
Catão, L., & Terrones, M. E. (2005). Fiscal deficits and inflation. Journal of Monetary Economics, 52(3), 529–554. https://doi.org/10.2139/ssrn.879140
Central Bank of Nigeria. (2015). Financing government programmes in economic downturn: The role of central bank of nigeria? Economic and Financial Review, 53(4).
Duodu, E., Baidoo, S. T., Yusif, H., & Frimpong, P. B. (2022). Money supply, budget deficit and inflation dynamics in Ghana: An empirical investigation. Cogent Business & Management, 9(1). https://doi.org/10.1080/23311975.2022.2043810
Durguti, E. A. (2020). How Does the Budget Deficit Affect Inflation Rate – Evidence from Western Balkans Countries. International Journal of Finance & Banking Studies (2147-4486), 9(1), 01-10. https://doi.org/10.20525/ijfbs.v9i1.526
Egbulonu, K. G., & Amadi, K. W. (2016). Effect of fiscal policy on unemployment in the Nigerian economy. International Journal of Innovative Finance and Economics Research, 4(3).
Egwaikhide, F. O. (1999). Effects of budget deficit on trade balance in nigeria: A simulation exercise. African Development Review, 11(2), 265–289. https://doi.org/10.1111/1467-8268.00011
Essien, S. N. , Agboegbulem, N. T. I., Mba, M. K., & Onumonu, O. G. (2016). An empirical analysis of the macroeconomic impact of public debt in nigeria. CBN Journal of Applied Statistics., 7(1), 125–145.
Ezeanyeji, C. I., Imoagwu, C. P., & Ejefobihi, U. F. (2019). Public debt and inflation in Nigeria: An econometric analysis. International Journal of Applied Research, 5(3), 219–224.
Fasanya, I., Fajobi, A., & Adetokunbo, A. (2021). Are fiscal deficits inflationary in Nigeria? New evidence from bounds testing to cointegration with structural breaks. Economic Annals, 66(228), 123–147. https://doi.org/10.2298/eka2128123f
Fernando, J. (2024, June 26). Inflation: What it is, how it can be controlled, and extreme examples. Investopedia. https://www.investopedia.com/terms/i/inflation.asp
Fischer, S., Dornbusch, R., & Startz, R. (2018). Macroeconomics. Mcgraw-Hill.
Giavazzi, F., & Pagano, M. (1990). Can severe fiscal contractions be expansionary? Tales of two small european countries. In O. Blanchard & S. Fischer (Eds.), NBER Macroeconomics Annual (pp. 75–111). MIT Press.
Goodhart, C. A. E. (1989). Money, information and uncertainty. Palgrave Macmillan.
Gruber, J. (2019). Public finance and public policy. Worth Publishers.
Hashem, H. Y. M. (2017). Inflation in Egypt: A fiscal or monetary phenomenon?. Business and Economic Horizons, 13(4), 522–535.
Hayes, A. (2019). Fiscal deficit. Investopedia. https://www.investopedia.com/terms/f/fiscaldeficit.asp
Helmy, O. A. (2008). The impact of budget deficit on inflation in Egypt. Working Paper No. 141: Egyptian Center for Economic Studies.
Ibrahim Abdu, M. (2022). Analyzing the relationship between Fiscal Deficit and Inflation: The Case of Egypt. Scientific Journal for Economic& Commerce, 52(4), 235–271. https://doi.org/10.21608/jsec.2022.263945
Inam, U. (2014). Budget Deficit And Inflation In Nigeria: An Empirical Analysis (1970-2010). Journal of Economics and Sustainable Development, 5(2), 26–32.
Isiaka, M. A., Lamidi, L. O., Kareem, R. O., & Oladotun, P. F. (2022). Long-Run and Short-Run Relationship between Budget Deficits and Inflation Rate in Nigeria. African Journal of Economics and Sustainable Development, 5(1), 75–82.
Iyoha, M. A., & Oriakhi, D. (2002). Explaining african economic growth performance: The case of nigeria. African Economic Research Consortium.
Karakaplan, M. U. (2009). The conditional effects of external debt on inflation. Sosyal Ekonomik Araştırmalar Dergisi, 9(17), 203–217.
Lucas, R. E., & Stokey, N. L. (1983). Optimal fiscal and monetary policy in an economy without capital. Journal of Monetary Economics, 12(1), 55–93. https://doi.org/10.1016/0304-3932(83)90049-1
Mankiw, N. G. (2019). Principles of Economics (9th ed.). Cengage Learning.
Mishkin, F. S. (2019). The economics of money, banking and financial markets. Pearson Education.
Muhammad, N.I., Olaolu, D., Abu, A. S., & Umar, H. U. (2021). Effect of Public Debt on Inflation Rate in Nigeria. Lafia Journal of Economics and Management Sciences, 6(1), 171–186.
Nastansky, A., & Strohe, H. G. (2015). Public debt, money and consumer prices: a vector error correction model for Germany. Ekonometria, 1(47). https://doi.org/10.15611/ekt.2015.1.01
Nguyen, V. B. (2015). Effects of fiscal deficit and money M2 supply on inflation: Evidence from selected economies of Asia. Journal of Economics, Finance and Administrative Science, 20(38), 49–53. https://doi.org/10.1016/j.jefas.2015.01.002
Nwakoby, C. N. I., Okaro, C. S. O., & Ananwude, A. C. (2016). Fiscal Deficit and Inflation in an Oil Rich Exporting Country : Evidence from Nigeria. Journal of Policy and Development Studies, 10(3), 140–155. https://doi.org/10.12816/0032105
Obeng, S. H., & Abotsi, A. K. (2024). Fiscal Deficits and Inflation in Ghana. International Journal of Economics and Financial Issues, 14(1), 154–163.
Odozi, V. A. (1996). Nigeria’s domestic public debt stock: an assessment. Bullion, 20(2). 2.
OECD. (2022). General government deficit. Organisation for Economic Co-Operation and Development. https://www.oecd.org/en/data/indicators/general-government-deficit.html
Oladipo, S. O., & T.O. Akinbobola. (2011). Budget deficit and inflation in nigeria : A causal relationship. Journal of Emerging Trends in Economics and Management Science, 2(1), 1–8.
Oner, C. (2024). Inflation: Prices on the rise. International Monetary Fund. https://www.imf.org/en/Publications/fandd/issues/Series/Back-to-Basics/Inflation
Orlowski, L. T. (2008). Stages of the 2007/2008 Global Financial Crisis: Is There a Wandering Asset Price Bubble? SSRN Electronic Journal. https://doi.org/10.2139/ssrn.1326649
Oyeleke, O. J. (2021). On the Non-Linear Relationship between Fiscal Deficit and Inflation: The Nigeria Experience. International Advances in Economic Research, 27(2), 105–117. https://doi.org/10.1007/s11294-021-09822-7
Palmcoast Microfinance Bank . (2020). Palmcoast microfinance bank. Palmcoast Microfinance Bank. https://palmcoastmicrofinancebank.com/
Ross, S. (2022, May 12). Understanding the Effects of Fiscal Deficits on an Economy. Investopedia. https://www.investopedia.com/ask/answers/021015/what-effect-fiscal-deficit-economy.asp
Samuelson, P. A., & Nordhaus, W. D. (2010). Economics (19th ed.). McGraw-Hill.
Shuaibu, M., Mahmud Muhammad, H., Abdullahi, S. I., & Gwazawa, U. G. (2021a). Impact of Public Debt on Inflation and Unemployment in Nigeria: An ARDL Vector Error Correction Model. Noble International Journal of Economics and Financial Research, 6(5), 91–98. https://doi.org/10.51550/nijefr65.91.98
Shuaibu, M., Mahmud Muhammad, H., Abdullahi, S. I., & Gwazawa, U. G. (2021b). Impact of Public Debt on Inflation and Unemployment in Nigeria: An ARDL Vector Error Correction Model. Noble International Journal of Economics and Financial Research, 6(5), 91–98. https://doi.org/10.51550/nijefr65.91.98
Skidelsky, R. (2018). The quantity theory of money: From history to science. In Money and Government (pp. 60–72). Yale University Press. https://doi.org/10.12987/9780300244243-007
Ssebulime, K., & Edward, B. (2019). Budget deficit and inflation nexus in Uganda 1980–2016: a cointegration and error correction modeling approach. Journal of Economic Structures, 8(1). https://doi.org/10.1186/s40008-019-0136-4
Tanzi, V., & Schuknecht, L. (2000). Public spending in the 20th century. Cambridge Cambridge University Press.
Thahara, A. F., & Washima, M. N. F. (2019). The impact of public debt on inflation: a case study of Sri Lanka. Proceedings of 9th International Symposium (Full Paper).
Tobin, J. (1980). Asset accumulation and economic activity : Reflections on contemporary macroeconomic theory. University Of Chicago Press.
Tule, M. K., Nuruddeen, U., Ogundele, O. S., & Martins, A. O. (2019a). A test of the fiscal theory of price level: Case study of Nigeria. International Journal of Economics and Financial Issues, 9(6), 67–76. https://doi.org/10.32479/ijefi.8768
Tule, M. K., Nuruddeen, U., Ogundele, O. S., & Martins, A. O. (2019b). A test of the fiscal theory of price level: Case study of Nigeria. International Journal of Economics and Financial Issues, 9(6), 67–76. https://doi.org/10.32479/ijefi.8768
Urquhart, M. D. (2021). Public debt, inflation, and the Fiscal Theory of Price Level in emerging markets: the case of Paraguay. Macroeconomics and Finance in Emerging Market Economies, 15(3), 246–272. https://doi.org/10.1080/17520843.2021.1927128
Wissem Boukraine. (2021). Debt, economic growth and inflation in Tunisia. Journal of Smart Economic Growth, 6(1), 75–82.
Woodford, M. (2012). Methods of policy accommodation at the interest-rate lower bound. Jackson Hole Economic Symposium.
Adediji, A. M., & Adesanya, B. M. (2023). Budget deficit financing options and inflationary pressure in Nigeria . Nigerian Defence Academy Journal of Economics and Finance, 7(3).
Akpan, E., & Ekong, C. N. (2023). Fiscal deficits and inflation in Nigeria. International Journal of Academic Accounting, Finance & Management Research(IJAAFMR), 7(1), 42–58.
Alam, Md. M., Sadekin, Md. N., & Saha, S. K. (2020). The impact of macroeconomic variables on the budget deficit in Bangladesh: an econometric analysis. South Asian Journal of Business Studies, ahead-of-print(ahead-of-print). https://doi.org/10.1108/sajbs-05-2020-0141
Andoni, M., & Osmani, M. (2017). Assessment of Relationship Between Inflation, Growth and Fiscal Deficit in Albania-An Econometric Approach. European Scientific Journal, ESJ, 13(13), 137. https://doi.org/10.19044/esj.2017.v13n13p137
Barro, R. J. (1974). Are government bonds net wealth? Journal of Political Economy, 82(6), 1095–1117. https://doi.org/10.1086/260266
Barro, R., & Sala, X. (2004). Economic growth. The Mit Press.
Batool, I., Chandia, K. E., Sarwar, B., & Iqbal, M. B. (2022). Fiscal Dominance and the Inflation Dynamics in Pakistan: An Empirical Analysis. Millennial Asia, 15(1), 097639962211030. https://doi.org/10.1177/09763996221103003
Bayir, M., & Güvenoğlu, R. A. H. (2020). The analysis of relationship between the money supply, budget deficit and inflation in Turkey: 2009-2019. . In ICOAEF’20, VII International Conference on Applied Economics and Finance August 21-22, 2020/Izmir–Turkey.
Blanchard, O. (2019). Public debt and low interest rates. American Economic Review, 109(4), 1197–1229. https://doi.org/10.1257/aer.109.4.1197
Blanchard, O. J. (1990). OECD economics department working papers. OECD Economics Department Working Papers No. 79. https://doi.org/10.1787/18151973
Blanchard, O., & Johnson, D. R. (2017). Macroeconomics (7th ed.). Pearson.
Bolhuis, M. (2024). Fiscal r-star: Fiscal-Monetary tensions and implications for policy. IMF Working Paper, 2024(174), 1–1. https://doi.org/10.5089/9798400282126.001
Boyle, M. (2021). Know what causes inflation and who profits from it. Investopedia. https://www.investopedia.com/ask/answers/111314/what-causes-inflation-and-does-anyone-gain-it.asp
Bulawayo, M. , Chibwe, F., & Seshamani, V. (2018). The impact of budget deficits on inflation in Zambia. Journal of Economics and Development Studies, 6(2), 13–23.
Carlin, W., & Soskice, D. W. (2015). Macroeconomics : institutions, instability, and the financial system. Oxford University Press, Cop.
Catão, L., & Terrones, M. E. (2005). Fiscal deficits and inflation. Journal of Monetary Economics, 52(3), 529–554. https://doi.org/10.2139/ssrn.879140
Central Bank of Nigeria. (2015). Financing government programmes in economic downturn: The role of central bank of nigeria? Economic and Financial Review, 53(4).
Duodu, E., Baidoo, S. T., Yusif, H., & Frimpong, P. B. (2022). Money supply, budget deficit and inflation dynamics in Ghana: An empirical investigation. Cogent Business & Management, 9(1). https://doi.org/10.1080/23311975.2022.2043810
Durguti, E. A. (2020). How Does the Budget Deficit Affect Inflation Rate – Evidence from Western Balkans Countries. International Journal of Finance & Banking Studies (2147-4486), 9(1), 01-10. https://doi.org/10.20525/ijfbs.v9i1.526
Egbulonu, K. G., & Amadi, K. W. (2016). Effect of fiscal policy on unemployment in the Nigerian economy. International Journal of Innovative Finance and Economics Research, 4(3).
Egwaikhide, F. O. (1999). Effects of budget deficit on trade balance in nigeria: A simulation exercise. African Development Review, 11(2), 265–289. https://doi.org/10.1111/1467-8268.00011
Essien, S. N. , Agboegbulem, N. T. I., Mba, M. K., & Onumonu, O. G. (2016). An empirical analysis of the macroeconomic impact of public debt in nigeria. CBN Journal of Applied Statistics., 7(1), 125–145.
Ezeanyeji, C. I., Imoagwu, C. P., & Ejefobihi, U. F. (2019). Public debt and inflation in Nigeria: An econometric analysis. International Journal of Applied Research, 5(3), 219–224.
Fasanya, I., Fajobi, A., & Adetokunbo, A. (2021). Are fiscal deficits inflationary in Nigeria? New evidence from bounds testing to cointegration with structural breaks. Economic Annals, 66(228), 123–147. https://doi.org/10.2298/eka2128123f
Fernando, J. (2024, June 26). Inflation: What it is, how it can be controlled, and extreme examples. Investopedia. https://www.investopedia.com/terms/i/inflation.asp
Fischer, S., Dornbusch, R., & Startz, R. (2018). Macroeconomics. Mcgraw-Hill.
Giavazzi, F., & Pagano, M. (1990). Can severe fiscal contractions be expansionary? Tales of two small european countries. In O. Blanchard & S. Fischer (Eds.), NBER Macroeconomics Annual (pp. 75–111). MIT Press.
Goodhart, C. A. E. (1989). Money, information and uncertainty. Palgrave Macmillan.
Gruber, J. (2019). Public finance and public policy. Worth Publishers.
Hashem, H. Y. M. (2017). Inflation in Egypt: A fiscal or monetary phenomenon?. Business and Economic Horizons, 13(4), 522–535.
Hayes, A. (2019). Fiscal deficit. Investopedia. https://www.investopedia.com/terms/f/fiscaldeficit.asp
Helmy, O. A. (2008). The impact of budget deficit on inflation in Egypt. Working Paper No. 141: Egyptian Center for Economic Studies.
Ibrahim Abdu, M. (2022). Analyzing the relationship between Fiscal Deficit and Inflation: The Case of Egypt. Scientific Journal for Economic& Commerce, 52(4), 235–271. https://doi.org/10.21608/jsec.2022.263945
Inam, U. (2014). Budget Deficit And Inflation In Nigeria: An Empirical Analysis (1970-2010). Journal of Economics and Sustainable Development, 5(2), 26–32.
Isiaka, M. A., Lamidi, L. O., Kareem, R. O., & Oladotun, P. F. (2022). Long-Run and Short-Run Relationship between Budget Deficits and Inflation Rate in Nigeria. African Journal of Economics and Sustainable Development, 5(1), 75–82.
Iyoha, M. A., & Oriakhi, D. (2002). Explaining african economic growth performance: The case of nigeria. African Economic Research Consortium.
Karakaplan, M. U. (2009). The conditional effects of external debt on inflation. Sosyal Ekonomik Araştırmalar Dergisi, 9(17), 203–217.
Lucas, R. E., & Stokey, N. L. (1983). Optimal fiscal and monetary policy in an economy without capital. Journal of Monetary Economics, 12(1), 55–93. https://doi.org/10.1016/0304-3932(83)90049-1
Mankiw, N. G. (2019). Principles of Economics (9th ed.). Cengage Learning.
Mishkin, F. S. (2019). The economics of money, banking and financial markets. Pearson Education.
Muhammad, N.I., Olaolu, D., Abu, A. S., & Umar, H. U. (2021). Effect of Public Debt on Inflation Rate in Nigeria. Lafia Journal of Economics and Management Sciences, 6(1), 171–186.
Nastansky, A., & Strohe, H. G. (2015). Public debt, money and consumer prices: a vector error correction model for Germany. Ekonometria, 1(47). https://doi.org/10.15611/ekt.2015.1.01
Nguyen, V. B. (2015). Effects of fiscal deficit and money M2 supply on inflation: Evidence from selected economies of Asia. Journal of Economics, Finance and Administrative Science, 20(38), 49–53. https://doi.org/10.1016/j.jefas.2015.01.002
Nwakoby, C. N. I., Okaro, C. S. O., & Ananwude, A. C. (2016). Fiscal Deficit and Inflation in an Oil Rich Exporting Country : Evidence from Nigeria. Journal of Policy and Development Studies, 10(3), 140–155. https://doi.org/10.12816/0032105
Obeng, S. H., & Abotsi, A. K. (2024). Fiscal Deficits and Inflation in Ghana. International Journal of Economics and Financial Issues, 14(1), 154–163.
Odozi, V. A. (1996). Nigeria’s domestic public debt stock: an assessment. Bullion, 20(2). 2.
OECD. (2022). General government deficit. Organisation for Economic Co-Operation and Development. https://www.oecd.org/en/data/indicators/general-government-deficit.html
Oladipo, S. O., & T.O. Akinbobola. (2011). Budget deficit and inflation in nigeria : A causal relationship. Journal of Emerging Trends in Economics and Management Science, 2(1), 1–8.
Oner, C. (2024). Inflation: Prices on the rise. International Monetary Fund. https://www.imf.org/en/Publications/fandd/issues/Series/Back-to-Basics/Inflation
Orlowski, L. T. (2008). Stages of the 2007/2008 Global Financial Crisis: Is There a Wandering Asset Price Bubble? SSRN Electronic Journal. https://doi.org/10.2139/ssrn.1326649
Oyeleke, O. J. (2021). On the Non-Linear Relationship between Fiscal Deficit and Inflation: The Nigeria Experience. International Advances in Economic Research, 27(2), 105–117. https://doi.org/10.1007/s11294-021-09822-7
Palmcoast Microfinance Bank . (2020). Palmcoast microfinance bank. Palmcoast Microfinance Bank. https://palmcoastmicrofinancebank.com/
Ross, S. (2022, May 12). Understanding the Effects of Fiscal Deficits on an Economy. Investopedia. https://www.investopedia.com/ask/answers/021015/what-effect-fiscal-deficit-economy.asp
Samuelson, P. A., & Nordhaus, W. D. (2010). Economics (19th ed.). McGraw-Hill.
Shuaibu, M., Mahmud Muhammad, H., Abdullahi, S. I., & Gwazawa, U. G. (2021a). Impact of Public Debt on Inflation and Unemployment in Nigeria: An ARDL Vector Error Correction Model. Noble International Journal of Economics and Financial Research, 6(5), 91–98. https://doi.org/10.51550/nijefr65.91.98
Shuaibu, M., Mahmud Muhammad, H., Abdullahi, S. I., & Gwazawa, U. G. (2021b). Impact of Public Debt on Inflation and Unemployment in Nigeria: An ARDL Vector Error Correction Model. Noble International Journal of Economics and Financial Research, 6(5), 91–98. https://doi.org/10.51550/nijefr65.91.98
Skidelsky, R. (2018). The quantity theory of money: From history to science. In Money and Government (pp. 60–72). Yale University Press. https://doi.org/10.12987/9780300244243-007
Ssebulime, K., & Edward, B. (2019). Budget deficit and inflation nexus in Uganda 1980–2016: a cointegration and error correction modeling approach. Journal of Economic Structures, 8(1). https://doi.org/10.1186/s40008-019-0136-4
Tanzi, V., & Schuknecht, L. (2000). Public spending in the 20th century. Cambridge Cambridge University Press.
Thahara, A. F., & Washima, M. N. F. (2019). The impact of public debt on inflation: a case study of Sri Lanka. Proceedings of 9th International Symposium (Full Paper).
Tobin, J. (1980). Asset accumulation and economic activity : Reflections on contemporary macroeconomic theory. University Of Chicago Press.
Tule, M. K., Nuruddeen, U., Ogundele, O. S., & Martins, A. O. (2019a). A test of the fiscal theory of price level: Case study of Nigeria. International Journal of Economics and Financial Issues, 9(6), 67–76. https://doi.org/10.32479/ijefi.8768
Tule, M. K., Nuruddeen, U., Ogundele, O. S., & Martins, A. O. (2019b). A test of the fiscal theory of price level: Case study of Nigeria. International Journal of Economics and Financial Issues, 9(6), 67–76. https://doi.org/10.32479/ijefi.8768
Urquhart, M. D. (2021). Public debt, inflation, and the Fiscal Theory of Price Level in emerging markets: the case of Paraguay. Macroeconomics and Finance in Emerging Market Economies, 15(3), 246–272. https://doi.org/10.1080/17520843.2021.1927128
Wissem Boukraine. (2021). Debt, economic growth and inflation in Tunisia. Journal of Smart Economic Growth, 6(1), 75–82.
Woodford, M. (2012). Methods of policy accommodation at the interest-rate lower bound. Jackson Hole Economic Symposium.
Published
2026-06-01
How to Cite
Ekong, C., Umoh, O., & Ukpe, U. (2026). Fiscal Deficit and Inflation: Evidence from the Nigerian Economy. GPH-International Journal of Applied Management Science, 6(2), 48-82. https://doi.org/10.5281/zenodo.20489395
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