paper, I assess the implications of the zero lower bound in a DSGE model with financial frictions. The analysis shows that … as the management of expectations by the central bank or a counter-cyclical fiscal stimulus, may help recover the economy …

inflation in order to stabilize the expectations of households, firms and innovators. Endogenous growth provides a self … debt-stabilizing inflation when current fiscal deficits are not backed by future fiscal surpluses. Because growth creates … unique stable equilibrium, provided that the policy permits r−g to fall with inflation. …

to support the standard objection to such policies: that they will lead to uncontrollable inflation. Theoretical models … industrialization. An institutional case study of the period, complemented by a general-to-specific econometric analysis, finds no … 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 …

quasi-fiscal deficit through the use of the inflation tax but as inflation increases money demand drops and there is a limit … high inflation can arise even if money demand is perfectly inelastic with respect to inflation and the real value of … interest payments is relatively low. The key insight is that if expected inflation is a function of the current state of the …

This paper analyses the macroeconomic effects of a protracted period of low and falling inflation rates when monetary … terms (debt-deflation channel). In this scenario, even cost-push shocks that in normal circumstances would reduce inflation …

households. Then, in contrast to the active monetary and passive fiscal policy regime, inflation moves oppositely from the … inflation target and a stronger reaction of interest rates to inflation increases the response of inflation to shocks. Moreover …, a higher level of public debt increases the response of inflation while a weaker reaction of taxes to debt decreases the …