sector expectations that helps to dampen the fall in output and inflation at the outset of the liquidity trap …

near-term economic outlook, characterised by persistently low nominal interest rates and inflation, and in a lasting low …

multiplier of fiscal expansion is found to be significantly dampened by tighter financial conditions in case households are less …

. The risk of future regime shifts has encompassing effects on equilibrium. Inflation is systematically higher than it would … stability. This inflation bias is increasing in the real value of government debt. Regime-switching probabilities are not … interest rate sufficiently moderately when inflation increases. Lower fiscal dominance risk, in turn, mitigates the inflation …

This paper provides a comprehensive empirical analysis of the role of discretionary fiscal policy for inflation … is difficult to find robust evidence of the fiscal policy stance or impulse impacting directly on inflation differentials …. We do find, however, support for an indirect effect of discretionary fiscal policy on inflation differentials working …