This paper investigates the international spillovers of government debt and the associated risk of inflation within a … with the level of debt in the PAYG country. Higher inflation risk harms both countries. Actually, in contrast to the debt … can shift part of its long-term debt burden to the funded country. Moreover, the PAYG country gains from unexpected …

is stronger for countries with higher average inflation or debt. …For a sample of sixteen OECD countries over the period 1980-2007 we show that, for given debt-GDP ratio, an increase in … the maturity of the public debt by one year lowers its long-term interest rate by around 20-30 basis points. This effect …

This paper explores the effect of inflation supply and demand shocks on government debt. It identifies the shocks using … regressions and local projections suggest that supply shocks lead to persistent increases in government debt, while demand shocks … result in long-lasting declines. Furthermore, high debt levels increase economic vulnerability, amplifying the impacts of …

Historically high levels of private and public debt coupled with already very low short-term interest rates appear to … considered is monetary financing by central banks to boost demand and/or relieve debt burdens. We find little empirical evidence … to support the standard objection to such policies: that they will lead to uncontrollable inflation. Theoretical models …

This paper investigates the long-run effects of public debt and inflation on economic growth. Our contribution is both … over the 1965-2010 period, we find significant negative long-run effects of public debt and inflation on growth. Our … results indicate that, if the debt to GDP ratio is raised and this increase turns out to be permanent, then it will have …