Are deficits in the government’s budget inflationary? (Analyses of statistical data of Albania economy during the years 1996-2010)

Abstract

Specific events of state finances has significant effects mostly in accelerating inflation and thus also on the 
country's economic stability. Given that inflation exerts a negative impact on the economy, the objectives of this 
study focus not on the consequences of inflation in economy but on the budget deficit- cause that effect inflation 
in the economy. 
Considering the fact that Inflation has a large impact on the economy of a country, this study focuses on 
verifying the relationship and interdependence that exists between this variable and the other macroeconomic 
variable such as government Budget Deficit. This papper is a research study based on the registered statistical 
data of these macroeconomic indices that affect the performance of Albanian economy during the years 1996
2010.