should inflation be included in a budget essay? (1 Viewer)

[unfold]

hey all,

i'm sorry to ask...a possibly silly question as such, and i know one of the aims of fiscal policy is to achieve non-inflationary economic growth. From here on, i'm lost. Non-inflationary..okay...then do i include inflation?? (i'm sensing a YES!)

 

[patlaw]

you have to include effects on inflation. for example, the 05/06 budget is likely to be inflationary simply because of the widespread tax cuts and the more money the public has to spend on products are likely to see increased inflation

 

[Rafy]

Simply, Yes. Inflation in one of the economic outcomes of fiscal policy.