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Uloga fiskalnog deficita u Sloveniji i njegov utjecaj na inflaciju
Markovič-Hribernik, Tanja
Can a state, and to what extent, afford to finance public consumption through a fiscal deficit? This issue became crucial for Slovenia immediately after gaining its independence when its public debt ...was consumption through deficit financing. However, when analysing future prospects for running a fiscal deficit, several restrictions must be taken into account which are related to the effect of the deficit on certain macroeconomic variables (inflation, interest rates, balance of payments, etc.), as well as the issue of solvency of the state and a long-term sustainability of fiscal policy, and the level and structure of public debt instruments. In analyzing the future role of a fiscal deficit in Slovenia, this article considers only one restriction, that is, inflation. Although scientific works usually analyse the danger of inflation due to financing a fiscal deficit with the central bank, this article also discusses other potential aspects of inflation.
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