policies will adjust. Temporarily explosive debt has no effect on inflation if households expect all adjustments to occur … targeting inflation to stabilizing debt, then debt feeds directly into the path of inflation and monetary policy can no longer … control inflation. News that reduces expected primary surpluses can bring future inflation into the present, well before the …

. Inflation may be positive throughout, so the absence of deflation is not evidence against a liquidity trap. Output, on the other …

Inflation targeting is shown to imply inflation forecast targeting: the central bank's inflation forecast becomes an … explicit intermediate target. Inflation forecast targeting simplifies both implementation and monitoring of monetary policy …. The weight on output stabilization determines how quickly the inflation forecast is adjusted towards the inflation target …

current and future inflation innovations to revalue government debt, reducing reliance on distorting taxes; (2) the role of … inflation in optimal fiscal financing increases with the average maturity of government debt; (3) as average maturity rises, it … is optimal to tradeoff inflation for output stabilization; (4) inflation is relatively more important as a fiscal shock …

We develop the theory of price-level determination in a range of models using both ad hoc policy rules and jointly …

Inflationary finance involves first, the tax on cash balances from expected inflation, and second, a capital levy from … unexpected inflation. From the standpoint of minimizing distortions, these capital levies are attractive, ex post, to the …

;tax-smoothingquot; theory of government deficits, which predicts that the inflation tax follows approximately a martingale, and of models of …This paper shows that the optimal extraction of seigniorage implies a strong tendency for inflation to fall over time … inflation rate each period in a discretionary manner. One way to view the model is as a synthesis of the quot …

rates, and the shift in the response of the term structure of interest rates to inflation and output. Although the theory …This paper shows that the theory of monetary policy rules is able to explain, predict, and help understand a variety of …

inflation and activity. If policy makers are guided by the welfare criterion of the representative household, globalization … forces also lead monetary policy to be more aggressive with regard to inflation fluctuations but, at the same time, more …

This paper discusses the effects of the interaction between inflation and the taxation of capital income. The principal … conclusions are: (1) Inflation substantially increases the total effective tax rate on the income from capital used in the … between inflation and existing tax rules contributed to the fall in the ratio of share prices to real pretax earnings, or …