policy and inflation. As a backdrop, we briefly lay out several theoretical approaches to the effects of fiscal deficits on … inflation: the earlier Keynesian and monetarist approaches; and modern approaches incorporating expectations and forward looking … fiscal deficits and inflation generally holds in wartime when fiscally stressed governments resorted to the inflation tax …

adamant about preventing a rise in inflation? The large fiscal imbalance brings about inflationary pressures, triggering a … spiral of higher inflation, output contraction, and further debt accumulation. A coordinated commitment to inflate away the …

What accounts for inflation after 2008? We use the prominent pre-crisis Smets-Wouters (2007) model to address this … question. We find that due to price markup shocks alone inflation would have been 1% higher than observed and 0.5% higher that … responsible for the slow recovery of employment, though not for the initial drop. Monetary policy shocks predict an inflation rate …

collapse of the Bretton Woods system between 1971 and 1973 was rising U.S. inflation since 1965. It was driven in turn by … imports and a ninety day wage price freeze—was that U.S. inflation, driven by macro policies, was the main problem facing the … Federal Reserve Chairman Arthur F. Burns, Nixon adopted wage and price controls to mask the inflation, hence punting the …

This paper investigates whether permanent monetary tightenings increase inflation in the short run. It estimates, using … increases in the nominal interest-rate lead, in accordance with conventional wisdom, to a decrease in inflation and output and … an immediate increase in inflation and output and a decline in real rates. Permanent monetary shocks explain more than 40 …

provision of only a partial inflation-exclusion to assets for which it is feasible. The problem is examined in this paper by … means of a simple model of anticipated inflation, in which individuals may invest either in assets for which full or partial … inflation-exclusion is provided, or in cash, for which no loss offset is allowed. Among other issues, we shall examine the short …

sustained inflation are small relative to the costs of unemployment. If a temporary reduction in unemployment causes a permanent … increase in inflation, the present value of the resulting future welfare costs may well exceed the temporary short-run gain …. Previous analyses have underestimated the cost of a permanent increase in the inflation rate because they have ignored the …

inflation (with base drift in the price level) and price-level stability (without such base drift) are compared, and a suitable … loss function (corresponding to flexible inflation targeting) is discussed, including the index and level for the inflation … price stability. The benefits of credibility (private inflation expectations coinciding with the inflation target) are …

debt matters. For example, it determines whether news of future deficits implies current inflation or future inflation …. When long term debt is present, the government can trade current inflation for future inflation by debt operations; this … variance of inflation. I find cases in which long-term debt helps to stabilize inflation, and I find that the optimal inflation …