Populism or budgetary endogeneity? Discretionary fiscal policy in Argentina
Abstract
This paper uses the Fischer equation and Olivera-Tanzi effect to insulate the
inflationary endogeneity existing in Argentine public deficit. The outcome is a fiscal policy
discretionary measure known as zero inflation budget. Through this measure we examine if
the deficit reflects countercyclical policies or populist consumption targets.
JEL Classification: E32; E62.
Keywords: Political economy fiscal policy inflation countercyclical policy