Countries that have pursued distortionary macroeconomic policies, including high inflation, large budget deficits and …

It is often argued that the EMS is an effective disciplinary device for inflation-prone countries in the EEC, since it …-makers in high-inflation countries: the reason is that not only it attaches an extra penalty to inflation (in terms of … inflationary finance, we find that they will always prefer EMS membership. When the policy-maker needs revenue from the inflation …

the primary deficit with future values of inflation, interest rates, GDP and narrow money growth and changes in the … through adjustments in the primary deficit (80-100%), with less substantial roles being played by inflation (0-10%) and GDP … growth (0-20%). Focusing on the relation between fiscal imbalances and inflation suggests extremely modest interactions. This …

issue only nominal non-contingent bonds we examine the implications for optimal inflation of changes in the level and … given. We identify the main mechanisms through which inflation is affected by debt and debt maturity (a real balance effect … monetary and fiscal policy we find that the persistence and volatility of inflation depends on the sign, size and maturity …