Disturbing the fiscal theory of the price level: Can it fit the eu-15?



Figure 1 - General government balance and inflation: Germany

o Gov. bal.

Inflation


Source: European Economy 72, 2001. European Commission.


Figure 2 - General government balance and inflation: Italy

Source: European Economy 72, 2001. European Commission.


Figure 3 - General government balance and inflation: UK

° Gov. bal.           Inflation


Source: European Economy 72, 2001. European Commission.


16




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