unemployment on inflation, for given expected inflation, decreased until the early 1990s, but has remained roughly stable since …-recession trend, suggesting hysteresis. Second, while inflation has decreased, it has decreased less than anticipated, suggesting a … breakdown of the relation between inflation and activity. To examine the first, we look at 122 recessions over the past 50 years …

that this may have contributed to more elastic aggregate supply in recent years, which is consistent with lower inflation …

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 …

The negative and stable relationship between an economy's aggregate demand conditions and overall unemployment is well …-documented. We show that there is a large degree of heterogeneity in the cyclical sensitivities of unemployment across worker and … economy groups. First, unemployment is more than twice as sensitive to aggregate demand in advanced as in emerging market and …

times. An inflation shock only slightly reduces the debt ratio for a few quarters. A positive growth shock unambiguously …

). Fiscal dominance has always been a pressing problem as it can contribute to inflation and macroeconomic instability, and … and inflation …

This paper investigates the impact of low or high inflation on the public debt-to-GDP ratio in the G-7 countries. Our … simulations suggest that if inflation were to fall to zero for five years, the average net debt-to-GDP ratio would increase by … about 5 percentage points over the next five years. In contrast, raising inflation to 6 percent for the next five years …

We analyse optimal monetary and fiscal policy in a New-Keynesian model with public debt and inflation persistence … striking result is not true with high degrees of inflation persistence. Secondly, we show that optimal fiscal policy is more … active under discretion than commitment at all degrees of inflation persistence and all levels of debt …

inflation when there is no perceived commitment to reduce the fiscal deficit. The model is based on a modified version of the … current consumption leads to an equal increase in inflation. The timing of this increase varies with the size of the deficit … inflation. Three policy conclusions are offered …

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