This paper studies the patterns of inflation skewness in 56 countries. Monthly data suggests that inflation is … a developing country that uses inflation tax and external borrowing as the residual means for fiscal financing. The … model predicts a convex dependency of inflation on output, where inflation skewness depends positively on inflation …

This paper studies the patterns of inflation skewness in 56 countries. Monthly data suggests that inflation is … a developing country that uses inflation tax and external borrowing as the residual means for fiscal financing. The … model predicts a convex dependency of inflation on output, where inflation skewness depends positively on inflation …

Sovereign borrowing during inflation surges is a litmus test of a government's ability to withstand and navigate … inflation surges and how policy practices affect their ability to weather inflation shocks. We find that governments rely more … on foreign-currency debt from foreign investors during periods of high inflation. This pattern is particularly prevalent …