The Impact of Fiscal Deficit on Inflation in Namibia

Abstract This paper examined the impact of fiscal deficit on inflation in Namibia. The employed Autoregressive Distributed Lag Model (ARDL) and Granger causality approach using quarterly data for period 2002 - 2017. Empirical results showed evidence a long run positive effect suggests that has direct study also found unidirectional running from to confirmed South Africa’s prices have key policy implication drawn result is if not contained, high negative balances could impair monetary objective price stability. It therefore advised policies need be well coordinated bring within acceptable level. Given main goal Namibia achieve maintain stability, this suggest monitoring budget deficits developments Africa develop informed one way objective.