Section Article

The Relationship Between Budgetary Policy and Inflation
Author(s): Rahul Yadav

Abstract
This article delves into the complex interplay between economic policy and inflation shedding insight on the ways in which different policy actions affect the dynamics of inflation. We evaluate the impact of fiscal and monetary policy on inflation rates by looking at past data and empirical research. Government fiscal policies such as taxes and public expenditure and central bank activities such interest rate changes and open market operations are both included in the research. The impact of expectations and other external variables on inflationary tendencies is also discussed in the article. While monetary policy is usually better able to control inflation the results show that fiscal policy may be just as influential especially during recessions and supply shocks. Policy suggestions for efficient inflation management that fosters economic development and stability are included in the studys conclusion.