Mohammad Mohaghegh
The purpose of this study was to investigate
the effects of current and development expenditures as instruments of fiscal
policy and exchange rate, real money supply and GDP on macroeconomic variables
such as inflation in the Afghan economy, using annual data, during the period
(2002-2011). Is. In this regard, the econometric model of vector regression was
used. The results show that in the short run, real current expenditures, real
liquidity, and exchange rates increase inflation in Afghanistan. While the
increase in real development expenditures and GDP reduces inflation are also
statistically significant; But in the long run, it is only the increase in GDP
that will reduce inflation in the Afghan economy. Considering the results
obtained, in the short run, in order to control inflation, the share of
construction expenditures in the government budget should be increased, and in
the long run, discipline in government expenditures is the most effective
policy in controlling inflation.