Although accommodative policies and widespread indexation may account for the persistence of high inflation, they … cannot explain changes in the inflation rate. This paper examines the causes of such changes for the high-inflation episodes … distinguish between the “fiscal” and “balance of payments” views of the causes of high inflation by computing historical …

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 …

We show that the presence of nominal non-indexed government debt could give rise to more than one equilibrium inflation …

forces that generate inflation in the uncontrolled market, and that cause shrinkage of the controlled economy as resources …

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 …

rate regime and economicperformance. The paper argues that adopting a pegged exchange rate canlead to lower inflation, but …

This paper analyzes, in a public finance context, how the optimal use of the inflation and the consumption tax is … by 1992. Two main questions are addressed: first, how the constraint of having to share a common inflation tax, in order … to preserve fixed-exchange rates, influences the optimal policy decisions concerning the inflation tax; secondly, how the …