MILITARY EXPENDITURE AND INFLATION: A THEORETICAL AND EMPIRICAL ANALYSIS

Inflation is regarded as a global economic phenomenon, all countries regardless of itsprogress suffer from it. Subjugated efforts were made to confront inflation and containingit. Whereas developing countries havent given it the attention it deserves. Due to thenegative economic and social effects of inflation, it became necessary to search for itsreasons and resources. Military expenditure represents one of the channels that contributesin creating inflationary pressure via its effects on price expectations and demand surplusand raising money liquidity in the economy.