
(AGENPARL) – OTTAWA ven 09 giugno 2023 We study the impact government expenditure has on inflation. We find that changes in government expenditure account for a substantial portion of inflation variations. We also find that inflation and inflation expectations respond negatively to fiscal spending shocks, reaffirming the supply-side channel through which inflation responds to fiscal expansions.
Fonte/Source: https://www.bankofcanada.ca/2023/06/staff-working-paper-2023-30/