This paper quantitatively assesses the effects of inflation shocks on the public debt-to-GDP ratio in 19 advanced … impulse responses by local projections both suggest that a 1 percentage point shock to inflation rate reduces the debt … higher inflation, even if accompanied by some financial repression, could reduce public debt burden only marginally in many …

responsive to inflation. When monetary and fiscal policy regimes can switch, policy uncertainty also reduces spending multipliers …. In particular, when higher inflation induces a rising probability to switch to a regime in which monetary policy actively … controls inflation and fiscal policy raises future taxes to stabilize government debt, the multipliers can fall much below …

inflation expectations. We find that people underestimate public debt levels and increase inflation expectations when informed … the central bank considerably reduces the sensitivity of inflation expectations to public debt. We also show that people … associate high public debt with stagflationary effects and that the sensitivity of inflation expectations to public debt is …

This paper examines whether high government debt levels pose a challenge to containing inflation. It does so by … assessing the impact of government debt surprises on inflation expectations in advanced- and emerging market economies. It finds … that debt surprises raise long-term inflation expectations in emerging market economies in a persistent way, but not in …

characteristics and policy frameworks over the period 2001-2010, using several approaches. The analysis suggests that economies with … higher food shares in CPI baskets, fuel intensities, and pre-existing inflation levels were more prone to experience … scores seem to have contained the impact of these shocks better. The effect of the presence of inflation targeting regimes …

The perception that inflation dynamics in Sub-Saharan Africa (SSA) are driven by supply shocks implies a limited role … for monetary policy in influencing inflation in the short run. SSA's rapid growth, its integration with the global economy …, changes in the policy frameworks, among others, in the last decade suggest that the drivers of inflation may have changed. We …

Does the South African rand's relatively large volatility affect inflation? To shed some light on this question, a … standard estimation technique of exchange rate pass-through to inflation is extended to incorporate exchange rate volatility …. Estimated results suggest that higher exchange rate volatility tends to increase core inflation but to a relatively limited …

This paper provides some empirical estimates on how tightly is it feasible to control inflation in a very small open … inflation and output variability that are achievable under a range of alternative monetary policy rules. These frontiers … illustrate that inflation stabilization is more challenging in Iceland than in other industrial countries primarily because of …

This paper focuses on the role of the pass-through of the exchange rate and policydeterminants in driving inflation …, nonfood prices not only directly influence headline inflation, but also have an significant impact on food inflation via … second round effects; (ii) the pass-through of the exchange rate to headline inflation has jumped from zero to 11 percent …

Despite closing output gaps and tightening labor markets, inflation has remained low inthe euro area. Based on an … augmented Phillips Curve framework, we find that thisphenomenon-sometimes attributed to low global inflation-has been primarily … causedby a remarkable persistence of inflation, keeping it low despite the reduction in slack. Thisfeature is shown to be …