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 …

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

findings in favor of the fiscal theory of price level as opposed to the traditional monetarist doctrine. …

applying insurance theory is useful. We model risk neutral agents choosing portfolios of government bonds of n countries in a …

ist. Im Unterschied zur bestehenden Literatur zur Theorie einer Währungsunion und zur Theorie der internationalen …