The Relationship Between Budget Deficit and Inflation: An Application on Turkey

In this study, the effects of inflation on the budget deficit in Turkey are investigated using data from the period 1960-2016. The existence of cointegration relation between the series is examined by Johansen cointegration test. According to the results of the cointegration test, it has been found that there is a cointegration relationship between the series. When the coefficients are examined, it is concluded that there is a positive relationship between inflation and budget deficit