Unexpected inflation devalues nominal government bonds. It must therefore correspond to a decline in expected future … each component via a vector autoregression, in response to inflation, recession, surplus and discount rate shocks. Discount … rates, rather than deficits, account for most inflation variation. Smooth inflation that slowly devalues outstanding long …

, we document several potential fiscal dominance effects during 2000-2017 under Inflation Targeting (IT), and non …

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 …

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 …

has evolved to study inflation in Japan. Our key finding is that labor market dynamics shifted after 1998 so that … relationship between wages and prices, so wage inflation has become a much less important determinant of price inflation …

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 …

a burst of inflation that devalues the existing nominal debt stock. The probability of this outcome places upward … pressure on inflation expectations and poses a substantial challenge to a central bank pursuing an inflation target. The … distribution of outcomes for the path of future inflation has a fat right tail, revealing that only a small set of outcomes imply …

Observed inflation targets around the industrial world are concentrated at two percent per year. This chapter … investigates the extent to which the observed magnitudes of inflation targets are consistent with the optimal rate of inflation … inflation ranges from minus the real rate of interest to numbers insignificantly above zero. Furthermore, we argue that the zero …

Japan suffered a very high inflation rate in 1973-74. The CPI inflation rate rose to near 30% in 1974, the highest rate …, the oil crisis is blamed for the 1973-74 high inflation. However, due to monetary policy decisions in 1972-73, the … inflation rate had already exceeded 10% before the onset of the oil crisis in October 1973. These decisions include the interest …