inflation to the forefront of policy concerns. Those concerns will only grow as aging populations increase demands on government …, through which fiscal deficits directly affect inflation. The paper describes various ways in which fiscal policy can directly … affect inflation and explains why these fiscal effects are difficult to detect in time series data. …

taxation, modest inflation, and some reneging on the government's promised transfers. In the equilibrium, inflation …-targeting monetary policy cannot successfully anchor expected inflation. Expectational effects are always present, but need not have … large impacts on inflation and interest rates in the short and medium runs. …

An asset-pricing perspective on inflation reveals that it depends on current and expected monetary and fiscal policies … rates of return of these assets, and determine the price level and the inflation rate. The paper considers a tax reduction … cut can imply very different outcomes for inflation. …

current and future inflation innovations to revalue government debt, reducing reliance on distorting taxes; (2) the role of … inflation in optimal fiscal financing increases with the average maturity of government debt; (3) as average maturity rises, it … is optimal to tradeoff inflation for output stabilization; (4) inflation is relatively more important as a fiscal shock …

appreciable risk of default or higher inflation. But governments in advanced economies issue substantial nominal debt and nominal … devalued through higher current and future inflation rates. The paper develops a simple bond market supply-demand apparatus to … explain how fiscal policy can be a source of inflation, while monetary policy merely determines the timing of inflation. …