The fiscal theory states that inflation adjusts so that the real value of government debt equals the present value of … fiscal theory to interpret historical episodes, including the rise and fall of inflation in the 1970s and 1980s, the long … pegs, the ends of hyperinflations, currency crashes, and the success of inflation targets. Going forward, fiscal theory …

preclude a debt crisis through inflation, lowering the real interest rate and raising output. These reduce the real value of … the outstanding debt and the cost of new borrowing, and increase tax revenues and seigniorage. Unconventional policies … avert a crisis require excessive inflation for a sustained period of time. Unconventional monetary policy can only be …

constraint. It discusses five channels: (i) how inflation can (and cannot) lower the real burden of the public debt, (ii) how …

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 "tax-smoothing" theory … of government deficits, which predicts that the inflation tax follows approximately a martingale, and of models of …

The US and other advanced countries suffered bursts of severe inflation in 2021 and the first half of 2022, followed by … declines of inflation later in 2022, in some countries. In times of high volatility of price determinants--cost and … productivity--inflation can jump upward and fall downward at high speed, contrary to the uniformly sticky behavior associated with …

This paper reexamines the Phillips and Beveridge curves to explain the inflation surge in the U.S. during the 2020s. We … five other inflation surges over the past 111 years where the Beveridge threshold was breached. We define a Beveridge …