The paper aims to investigate the economic relationship between inflation and domestic debt. In countries that … experience high inflation, the inflationary process fed on increasing costs of domestic debt. As a result, the increasing debt to … countries into three groups. First group consists of Mexico, Turkey and Brazil; countries with high inflation experiences which …

This paper empirically examines the impact of public debt shocks on output and inflation in 34 emerging market … product (GDP) falls significantly after an unanticipated increase in public debt while inflation rises. We also examine …, while tighter global financial conditions dampen the negative impacts of debt shocks. For inflation, the responses vary …