debt from resulting in a high tax burden, a government default, or inflation. The second objective is to show that …

The fiscal theory states that inflation adjusts so that the real value of government debt equals the present value of … determines the path of expected inflation, while news about the present value of surpluses drives unexpected inflation. I use … fiscal theory to interpret historical episodes, including the rise and fall of inflation in the 1970s and 1980s, the long …

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

Low and stable inflation requires an appropriate fiscal framework aimed at stabilizing government debt. Historically …, trend inflation is critically influenced by actual or perceived changes to this framework, while cost-push shocks only … account for short-lasting movements in inflation. Before the pandemic, a moderate level of fiscal inflation has counteracted …

inflation designed to achieve a fiscal consolidation. In contrast with empirical contributions that emphasize the benefits of … expenditure based consolidations, the optimal policy calls for increases in taxes and inflation. Strong monetary accommodation is … quite beneficial relative to a situation where the Central Bank is only concerned with inflation stability and the inflation …

inflation could even liquidate German debt …