backward-looking inflation expectations. However, it does not lead to instability in several large multicountry econometric …

This paper focuses on the role of debt maturity in managing the government’s incentives to use opportunistic inflation … powerful instrument to affect the time profile of the inflation tax base and, hence, to mitigate the distortions introduced by …

This paper analyzes the relationship between inflation tax and the level of government spending in a public finance … inflation tax becomes an increasing function of government spending. Furthermore, the more inefficient the tax collection system …, the larger the increase in the inflation tax for a given increase in government spending. A numerical analysis of the …

This paper explains why sovereign issuers of reserve currencies do not use unexpected inflation to repudiate their … excessive money creation. It is shown that even without policy precommitment or aversion to inflation, the availability of … alternative currencies can support an equilibrium with a finite, time consistent inflation rate …