This paper investigates the international spillovers of government debt and the associated risk of inflation within a … inflation at the cost of the funded country. In response to these conflicting interests about inflation, inflation risk may rise … with the level of debt in the PAYG country. Higher inflation risk harms both countries. Actually, in contrast to the debt …

This paper investigates the international spillovers of government debt and the associated risk of inflation within a … inflation at the cost of the funded country. In response to these conflicting interests about inflation, inflation risk may rise … with the level of debt in the PAYG country. Higher inflation risk harms both countries. Actually, in contrast to the debt …

This paper investigates the international spillovers of government debt and the associated risk of inflation within a … inflation at the cost of the funded country. In response to these conflicting interests about inflation, inflation risk may rise … with the level of debt in the PAYG country. Higher inflation risk harms both countries. Actually, in contrast to the debt …

form a monetary union, the country with higher initial inflation will definitely experience an increase in its inequalities …. In the country with lower initial inflation, however, inequalities might go in either direction since the inflationary … effect of uniting its monetary policy with a high inflation country can dominate the reducing effect of vanished trade …

.The cost channel makes monetary policy less effective in combatting inflation, but it is shown that the optimal response to the …

stabilizing shocks increases, when there is a gap in the inflation differential due to a relative shock, an idiosyncratic shock or …