government and economic activities is inflation perfectly guaranteed not to accelerate. A truly independent central bank is …

In this paper, I present a unified and micro-founded explanation for various types of inflation without assuming ad hoc … frictions or irrationality. The explanation is similar to the conventional inflation theory in the sense that an independent … central bank can control inflation and also similar to the fiscal theory of the price level in the sense that a source of …

inflation. In addition, another source of output gaps other than frictions―a Nash equilibrium of a Pareto inefficient path … previously have been thought. The conventional monetary policy of utilizing frictions cannot necessarily stabilize inflation. In …

Recently, it has been argued that trend inflation may be the solution to the puzzle of inflation persistence in the New … Keynesian Phillips curve (NKPC). However, incorporating trend inflation into the NKPC raises another serious problem—it lacks a … microfoundation. The paper presents a microfoundation for trend inflation, which indicates that trend inflation is a natural …

government debt and inflation. A model that explicitly incorporates the political utility/objective function of government is … constructed. The government’s borrowing behavior and inflation are determined through the simultaneous optimization of government … whether it is appropriate to apply the fiscal sustainability test of Hamilton and Flavin to high inflation countries. …

This paper examines the mechanism of persistent inflation differentials, current account imbalances, and fiscal … behavior generates problems, such as inflation differentials, and the stability and growth pact does not appear to be … politically unified. In addition, the inflation differentials provide clear evidence that inflation acceleration is not caused by …

This paper theoretically examines a way out of the euro crisis based on a model of inflation acceleration and … generates inflation differentials and huge current account imbalances among member states. As a result, although relatively more …

objectives, the optimal quantity of money generally is accompanied by positive nominal interest and inflation rates through the … simultaneous optimization of government and the representative household. The fact that nominal interest and inflation rates are …

country shows persisting surpluses, which implies a possibility that China has taken this strategy. …