as the manifestation of excessive monetary injections [Krugman-Flood-Garber], the fiscal theory of inflation [Sargent …

This paper investigates budgetary rules for an economy characterized by inflation and volatile relative prices. We view … full ex-post indexation. Hence, one of the costs of inflation is that nominal contracts lose their disciplining role in …-predicting the realized one -- higher inflation increases the budget error and the average budget error is positive …