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 …

We empirically characterize episodes of large inflation surges that have been observed worldwide in the last three … decades. We document four facts. (1) Inflation surges tend to be persistent, with the duration of disinflation exceeding that … of the initial inflation increase. (2) Surges are initially unexpected but followed by a gradual catch-up of average …

exist two or no balanced paths while stationary equilibria with zero inflation exist only on a small (non-open) set of … and stability are influenced in a decisive way by fiscal and monetary parameters determining steady state inflation rates …

We exploit a hidden Markov model where inflation is determined by government deficits financed through money creation … and/or by destabilizing expectations dynamics (expectations can potentially divorce inflation from fundamentals). The … baseline model, proposed by Sargent et al. (2009), is used to analyze the interaction between fiscal deficits, inflation …

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 …

minimizing the variance of inflation as the policy objective. Following current developments in the theory of fiscal … monetary policies. The responses of inflation to various structural disturbances in the constant money growth rate …

on output and, in particular, also on inflation in the euro area under alternative settings for monetary policy. We … that this over-proportionality is stronger for the fiscal multiplier on inflation than on output. We relate this finding to …

inflation. Conventional macroeconomic models have implicitly assumed policy regimes in which the aforementioned mechanism does … extensions of the basic model show that quasi-fiscal shocks may produce undesirable effects, such as inflation following …