equilibrium with no inflation and no default exists. However, highly-indebted countries are more likely to default once they join …

This paper examines the welfare effects of mitigating the costs of inflation. In a simple model where money reduces … transaction costs, a fall in the costs of inflation is equivalent to financial innovation. This can be caused by paying interest … on deposits, indexing money, or “dollarizing.” Results indicate that financial innovation raises welfare in low inflation …

revenue from seigniorage for the EC member countries with particular focus on the high inflation countries. Assuming that by …The paper measures the effects of the integration of European financial markets and lower inflation in the EMS on the … 1992 all EC members participate fully in the EMS and reserve requirements are unified, the revenue from seigniorage will be …

to higher seigniorage, especially in developing, less democratic, and socially polarized countries, with high inflation …While most economists agree that seigniorage is one way governments finance deficits, there is less agreement about the … political, institutional, and economic reasons for relying on it. This paper investigates the main determinants of seigniorage …

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 …

This paper analyzes, in a public finance context, how the optimal use of the inflation and the consumption tax is … by 1992. Two main questions are addressed: first, how the constraint of having to share a common inflation tax, in order … to preserve fixed-exchange rates, influences the optimal policy decisions concerning the inflation tax; secondly, how the …

This paper provides general equilibrium estimates of the steady-state welfare gains of lowering inflation from a low … tax, it is found that inflation unambiguously reduces capital intensity, drives up the before-tax real rate of return to …

This paper focuses on the role of debt maturity in managing the government’s incentives to use opportunistic inflation … powerful instrument to affect the time profile of the inflation tax base and, hence, to mitigate the distortions introduced by …

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