-targeting interest rate policy with a fixed balance sheet …

We explore the links between credit expansion, inflation, and inflation expectations, and show that active public debt … management can trigger a non-interest rate channel of credit expansion. This creates incentives for the government to use debt … a theoretical monetary policy game, we show that it is welfare improving to delegate public debt management to an …

With this paper, our objective is to empirically study public debt sustainability by estimating a fiscal reaction … function where the primary balance relative to GDP is assumed to be a function of the public debt to GDP ratio of the previous … primary budget of the government by including the real long term interest rate and the in ation rate, measured as the change …