inflation and not enough to spreads,and yield larger fluctuations in response to risk shocks. Reaction curves display shifts …

The recent experience with low inflation has reopened interest in the liquidity trap; which occurs when the nominal …, an optimal inflation target given to the Central Bank. Second, the Treasury, who retains control over fiscal policy and … acts as leader, is given optimal output and inflation targets. This keeps inflationary expectations sufficiently high and …

, effective revenue ceilings induce an increase in deficit, debt and inflation. Under many scenarios, including recurrent adverse …

to support the standard objection to such policies: that they will lead to uncontrollable inflation. Theoretical models … support for a relationship between monetary financing and inflation. The findings lend support to recent calls for explicit …

inflation bias as monetary policy tries to exploit nominal wage contracts to address labour-market distortions Although an … inflation target eliminates this inflation bias, it creates a conflict between monetary policy and discretionary fiscal policy …

the inflation rate lower than either of the authorities would want. It explains indeed why Central Bank independence can … construction of this model was based on the existence of a Phillips-type relationship between the inflation rate and the … unemployment rate, which has lost its relevance in the contemporary economy. Today, the prospect of a rise in the inflation rate …