Is Inflation Fiscally Determined?

This paper examines the relationship between fiscal policy and inflation for 44 countries, from 1960 to 2020. The study was conducted using a panel VAR approach while accounting difference in monetary frameworks levels of space across countries. Results suggest that budget deficits are less likely cause when is based on targeting. In contrast, they inflationary group countries with poorly structured (such as partially dollarized Latin American economies).