ABSTRACT

The study highlights fiscal or monetary policy dominance in inflation determination with the relation between primary surplus and public debt. Other variables that also effects inflation are used in the study to see the impact of these variables on inflation as well. There are other determinants of inflation like international oil prices, exchange rate and policy rate. These variables are also included in the study to see the effect of these variables on inflation. The study practices TV VAR model for studying the varying coefficients over time from 1985 to 2023 with annual data. The findings of the study suggest monetary policy dominance with fiscal policy dominance in some time periods as well and significant positive relation of the control variables.