Barro, Robert J.; Bianchi, Francesco - National Bureau of Economic Research - 2023
(increases in current or future taxes or cuts in future spending). Within the Euro area, inflation reacts mostly to the area … recent global surges in inflation and government spending. This study applies the FTPL to 37 OECD countries for 2020 …-2022. The theory's centerpiece is the government's intertemporal budget constraint, which relates a country's inflation rate in …