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The Fiscal Theory Of The Price Level In Sub-Saharan Africa: A Structural Break Analysis, Christian Tchamda

Electronic Theses and Dissertations

In this paper, I provide empirical evidence of the fiscal theory of the price level (FTPL) using sub-Saharan African countries. While the traditional view of the inflation is driven and explained by the quantity theory of money, the FTPL argues that the government deficit has an impact on the price level. However, the empirical literature of the FTPL is not extensive. This paper adds to this literature in that it substantiates this theory. I determine using primary balance and liabilities data when available to classify a country as under either a monetary dominant regime (the traditional view) or under a …