INTERNATIONAL 8th USBİLİM EDUCATION, ECONOMY, MANAGEMENT AND SOCIAL SCIENCES CONGRESS
RELATIONSHIP BETWEEN PUBLIC EXPENDITURES AND INFLATION IN BRICS COUNTRIES AND TÜRKİYE
Yayıncı:
Akademik Paylaşım Platformu Publishing House - APP Publications
Inflation, which is associated with many reasons such as total demand increase, monetary expansion, cost increase and total supply decrease, is at the center of macroeconomic problems. Inflation, which reduces investments, real income, economic growth and welfare, also negatively affects expectations and distorts income distribution against the poor. Therefore, combating inflation is one of the main goals of economic policies. However, correctly diagnosing the causes of inflation is very important for the effectiveness of economic policies. There are strong suggestions that the increase in public expenditures can also lead to inflation by increasing total demand. In other words, the increase in the size of the public sector can be seen as a cause of inflation.The aim of this study is to investigate the relationships between public expenditures and inflation in BRICS (Brazil, Russia, India, China, South Africa) countries and Türkiye. According to the results of the analysis conducted using the panel fixed effects model with annual data for the period 1998-2021, public expenditures are not a variable explaining inflation in BRICS countries and Türkiye.
