This study examines the determinants of inflation in Tunisia from 1998 to 2023, with a particular focus on the role of fiscal policy. The study analyzes the long-run and short-run relationships between inflation and key macroeconomic variables, including government expenditure, government revenue, money supply, balance of trade, and budget deficits using ARDL model. The empirical findings reveal that budget deficits have a significant and positive impact on inflation, underscoring the critical role of fiscal imbalances in driving price instability. In contrast, government expenditure, government revenue, money supply, and balance of trade do not exhibit statistically significant long-term effects on inflation. The results highlight the importance of fiscal discipline and effective coordination between fiscal and monetary policies to achieve price stability. These findings provide valuable insights for policymakers in Tunisia and other developing economies facing similar inflationary pressures, emphasizing the need for prudent fiscal management and structural reforms to mitigate inflation volatility and ensure macroeconomic stability.

This study investigated the influence of infrastructure spending, government debt, and inflation on GDP in South Africa from 1995 to 2023. Motivated by the need for sustainable growth amid fiscal and inflationary pressures, this research addresses gaps in understanding how these factors shape economic performance. The primary objective was to assess these variables’ individual and combined effects on GDP and offer policy recommendations. Using an ARDL model, the study explored long- and short-term relationships among the variables. Results indicate that infrastructure spending positively impacts GDP, promoting long-term growth, while government debt hinders GDP in both short and long runs. Moderate inflation supports growth, but excessive inflation poses risks. These findings imply the need for targeted infrastructure investments, strict debt management practices, and inflation control measures to sustain economic stability and growth. Policy recommendations include expanding public investment in productive infrastructure, implementing fiscal rules to prevent unsustainable debt levels, and maintaining inflation within a controlled range. Ultimately, these policies could help South Africa build a resilient, balanced economy that addresses both immediate growth needs and long-term stability.

The study examines the factors shaping inflation in 2022–2023 and explores why inflation in the Hungarian economy has increased more sharply than in neighboring countries with similar structures. The research hypothesis suggests that the inflationary surge, which is notable both globally and within the European Union, is not solely due to market economy mechanisms, but also to specific circumstances in Hungary, including the state’s radical interventions aimed at curbing inflation. The study seeks to highlight these effects and provide recommendations for economic policymakers to develop a more resilient inflation policy. Additionally, it focuses on analyzing inflation in the agricultural sector. The results indicate that, alongside global inflationary pressures, several country-specific factors have driven up the inflation rate in Hungary. Energy prices have risen sharply, and some supply chains from the East have been disrupted. The country under study is less productive, and the impact of the energy price shock on the energy-intensive food industry is higher than in surrounding countries. Consequently, the exchange rate volatility in 2022–2023, combined with short- and medium-term factors, has had a significant impact on food inflation, causing substantial deviations from long-term equilibrium. The research concludes that, in addition to increasing food self-sufficiency, special attention should be given to the domestic development of the agricultural supply chain.

To fight inflation, European Central Bank (ECB) announced 10 successive interest rate hikes, starting on 27 July 2022, igniting an unprecedented widening of interest rate spreads in the euro area (ΕΑ). Greek banks, however, recorded among the highest interest rate spreads, far exceeding ΕΑ median and weighted average. Indeed, we document a strong asymmetric response of Greek banks to ECB interest rate hikes, with loan interest rates rising immediately, whilst deposit interest rates remained initially unchanged and then rose sluggishly. As a result, the interest rate spread hit one historical record after another. Greek systemic banks, probably taking advantage of the high concentration and low competition in the domestic sector benefited from key ECB interest rate hikes, recording gigantic increases in net interest income (NII), and consequently, substantial profits (almost €7.4 billion in the 2022–2023 biennium). Such excessive accumulation of profits (that deteriorates the living conditions of consumers) by the banking system could be called the inflation of “banking greed”, or bankflation. This new source of inflation created by the oligopolistic structure of the Greek banking sector counterworks the very reason for ECB interest rate increases and requires certain policy analysis recommendations in coping with it.