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Any good resource for university homework on how spending rules affect inflation or what is the relationship between spending rules and inflation? (discuss.tchncs.de)

submitted 3 weeks ago by [email protected] to c/[email protected]

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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

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[–] [email protected] 6 points 3 weeks ago* (last edited 3 weeks ago)

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, it 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