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. …

. Since inflation in our model is driven by distribution conflict, the "normal rate" of utilisation is associated with … consistent claims of firms and employees. Taking into account real debt effects of changes in inflation and distribution effects … Inflation in unserem Modell durch Verteilungskonflikte verursacht wird, ist der normale Auslastungsgrad durch miteinander …

. But a seeming puzzle arises of opposite Tobin-like inflation effects because theory indicates a negative Tobin effect when …Output growth, investment and the real interest rate are all found empirically to be negatively affected by inflation … investment falls and a positive Tobin effect when the real interest rate rises. We define inflation's Tobin effect more …

lower inflation than a situation with permanent public deficits. It also leads to higher welfare compared to a situation … public debt. Further, for a given monetary policy a stricter debt policy yields higher growth, lower inflation and higher … point but only at the cost of higher inflation and lower welfare …

inflation targeting in response to technology and government spending shocks …