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What is Inflation and Government Size Correlation about?

This document discusses theories relating inflation to the size of government. It reviews how economic theory provides different predictions depending on assumptions. Empirically, it analyzes the relationship between inflation and government spending across countries, over time in the US and UK, and during wartime periods. The analysis considers total government spending as well as defense and non-defense components. It finds little correlation between inflation and overall government size across countries

Author

TBP_Think_Tank

Language

EN