This paper provides comprehensive empirical evidence that supports the predictions of Sargent and Wallace's (1981) 'unpleasant monetarist arithmetic' that an increase in public debt is typically inflationary in countries with large public debt. Drawing on an extensive panel dataset, we find that...

Intro -- Contents -- I. INTRODUCTION -- II. CONCEPTUAL FRAMEWORK -- III. EMPIRICAL FINDINGS OF THE CROSS-COUNTRY STUDY -- IV. APPLICATION TO JAMAICA -- V. POLICY IMPLICATIONS -- VI. SUMMARY AND CONCLUSIONS -- A. DATA SOURCES AND DEFINITIONS AND COUNTRY GROUPING -- B. DEBT-INFLATION TRAP AND DEBT...