Any good resource for university homework on how spending rules affect inflation or what is the relationship between spending rules and inflation?
Any good resource for university homework on how spending rules affect inflation or what is the relationship between spending rules and inflation?
I tried to search really hard on google but it is a heavy topic on public finance. I really don't know where I can find some sources for it
if you want the mainstream perspective look up 'quantity theory of money'. from that it follows, less spending means less money and less inflation. so, spending rules reduce inflation by constraining the Government (but not commercial bank lending).
it can be true (sometimes), if you leave the economy with massive unemployment due to insufficient spending so that people don't have money, the economy slows down and eventually shrinks but hey atleast there is ze price stabilité.
if you want non-mainstream macroecon books, these two ones I have read and can recommend. 1 2
Not sure what you're looking for, but you might start with some of the references in this blog post:
What do you mean by spending rules?
I mean numerical fiscal rules, there is category spending rules. Rules for the state budget, spending and budget deficit. An example is Schuldenbremse in Germany