Social and Behavioral Sciences Commons^™

Does Inflation Tend To Perpetuate Itself? The Case Of Latin America, Ebrahim Harraf

All Graduate Theses and Dissertations, Spring 1920 to Summer 2023

The purpose of this study was threefold: (1) to test the existing theory which explains inflation as a result of its self-generating nature; (2) to investigate the contribution of foreign trade upon inflation; and (3) to test the casual relationship between the rate of inflation and the deficit. A system of four equations has been used to explain the relationship between the price level and the monetary expansion, between the rate of growth of the monetary base and the rate of the monetary expansion, the deficit and the monetary base, and, finally, between the deficit and the price level. As …