, effective revenue ceilings induce an increase in deficit, debt and inflation. Under many scenarios, including recurrent adverse …

of inflation targeting in 1992 or central bank independence in 1997), we instead take a longer perspective, which … alter the monetary base; and the adherence by policymakers in the 1960s and 1970s to nonmonetary views of the inflation …

Brazil has had a long period of high inflation. It peaked around 100 percent per year in 1964, decreased until the … crisis in the early 1980s. We show that the high-inflation period (1960-1994) was characterized by a combination of fiscal … deficits, passive monetary policy, and constraints on debt financing. The transition to the low-in inflation period (1995 …

Central banks are viewed as having a demonstrated ability to lower long-run inflation. Since the financial crisis … an explanation for why this may be the case. Because central banks have limited instruments, long-run inflation is … ultimately determined by fiscal policy. Central bank control of long-run inflation therefore ultimately hinges on its ability to …

We exploit a hidden Markov model where inflation is determined by government deficits financed through money creation … and/or by destabilizing expectations dynamics (expectations can potentially divorce inflation from fundamentals). The … baseline model, proposed by Sargent et al. (2009), is used to analyze the interaction between fiscal deficits, inflation …