avoids explosive debt and monetary policy controls inflation, irrespective of the relative strengths of each policy stance … inflation. Therefore, inflation and debt dynamics are determined jointly. To ensure stable macroeconomic conditions, both the …

requires a stationary evolution of real public debt, which steers inflation expectations and rules out endogenous fluctuations …-push shocks, such that output and inflation variances can be lower than in a corresponding case where debt is neutral. …

active monetary policy and stronger fiscal feedbacks from debt on taxes can lead to less volatile inflation and debt dynamics …

beliefs a monetary policy, which aims to stabilize inflation through an active interest rate policy, will destabilize the …

inflation stabilization. Unstable dynamics can occur when the CB is aggressively raising the interest rate in response to higher … expected inflation. The constraint on stabilizing interest rate policy is tighter the higher the primary deficit and the more … policy to be accommodating (passive). Inflation stabilization is nevertheless feasible if the CB uses an instrument not …

, the money growth rate should not rise by more than one for one with inflation when the primary surplus is raised with … inflation -- to ensure local equilibrium determinacy. When the central bank links the supply of money to government bonds by … controlling the bond-to-money ratio, an inflation stabilizing policy can be implemented for both fiscal policy regimes. Local …

Poland edged towards hyperinflation towards the latter half of 1989,but inflation fell dramatically after drastic … reformswere enacted in January of 1990. We analyse the consistency betweenfiscal deficits and inflation targets and assessPoland … fiscal deficits and inflation. We also assessthe impact of financial sector measures on seignioragerevenue and the …