. We use a microfounded New Keynesian model of a monetary union which incorporates persistence in inflation, and examine … non-cooperative interactions of fiscal and monetary authorities. We find that particularly when inflation is persistent …

there is a significant backward looking element in inflation behaviour. This cyclical instability can be mitigated if fiscal … policy in each member country reacts to inflation differences, but it can be aggravated if fiscal feedback on debt is too …

The main focus of the present paper is to analyze the impacts of financial policy on inflation rates. The analysis … utilized to reflect the relations between financial policy and inflation. Thus, more lights are shed on the fact that the first … components represented in governmental expenditure and taxation and the dependant variable inflation. The results show that there …

The purpose of this short paper is to show that inflation “band” targeting can solve the “time inconsistency” problem … that exists under inflation “point” targeting by setting a relevant target range. Moreover, we show that inflation band … natural levels, by setting the inflation rate within a target range and creating unexpected inflation. 2) It can mitigate …

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 …

across countries due to consumption home bias; thus fiscal policy influences inflation and the terms of trade. Prices are …