parameters of policy rules. The paper derives closed form solutions for equilibrium inflation and real debt as functions of … interest rate reverses the usual Granger-causal ordering between deficits and monetization, so that money growth (or inflation …

. The way money is modeled significantly changes the size of output and inflation effects, and the degree of inertia that … inflation exhibits following a policy shock. We offer a simple and conventional economic interpretation of these empirical facts. …

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 …