DEFICITS, POLITICS AND MONEY GROWTH

KEVIN B. GRIER, HOWARD E. NEIMAN

Research output: Contribution to journalArticlepeer-review

35 Scopus citations

Abstract

We examine the linkage between Federal deficits and money growth by allowing the Fed's response to any given deficit to vary systematically according to how the deficit is generated and the Party affiliation of the current president. In equations for Ml and monetary base growth, the structural deficit is consistently significant and invariant across political changes, while the cyclical component of the deficit (or a direct measure of the business cycle) is significant only during the tenure of Democratic presidents.

Original languageEnglish
Pages (from-to)201-214
Number of pages14
JournalEconomic Inquiry
Volume25
Issue number2
DOIs
StatePublished - Apr 1987

Fingerprint Dive into the research topics of 'DEFICITS, POLITICS AND MONEY GROWTH'. Together they form a unique fingerprint.

Cite this