Inflation and Public Finance (Theory-Policy-Practice)
Synopsis
Inflation has been an important economic problem that has determined the axis of public policies from past to present due to the social, political and economic effects it creates. While monetary and fiscal policies come to the fore in the fight against inflation, fiscal policies, which are the area where the economic policies of the state, the most important actor in the economy, are regulated, are seen as one step ahead in the fight against inflation due to their effects on both the market and the public sector. Therefore, practices regarding public expenditures and public revenues have an important place in the public policies that states have created in line with their own social structures in line with the economic perspectives prevailing in the period.
This study systematically examines the relationship between inflation, an economic problem that significantly affects the social structure, and public finance, which covers the economic activities of the state, in terms of selected topics. In this context, the study initially addressed the policies for combating inflation from a theoretical perspective and then explained the fiscal policies for combating inflation in detail. In the continuation of the study, firstly transfer expenditures from public expenditures for low-income groups that are deeply affected by inflation are discussed, and then the effect of inflation on real tax revenues is analyzed using an econometric model. In the following sections, various specific issues within public finance that are affected by inflation or affect inflation are systematically identified and discussed in detail. In the last two sections, inflation is discussed in two different periods, firstly the Ottoman financial structure during the First World War is explained specifically in terms of inflation, and then the effect of public financial management on inflation in the period after 2000 is evaluated.