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. …

steady states exist, a high-inflation trap can appear, and an economy will most probably converge to a high-inflation steady … threshold level reaches a high-inflation and low-capital steady state …

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 …

This paper quantitatively assesses the effects of inflation shocks on the public debt-to-GDP ratio in 19 advanced … impulse responses by local projections both suggest that a 1 percentage point shock to inflation rate reduces the debt … higher inflation, even if accompanied by some financial repression, could reduce public debt burden only marginally in many …

We develop a theoretical framework to account for the observed instability of the link between inflation and fiscal … bank that has full control over inflation. When policy makers deviate from this Virtuous regime, agents conduct Bayesian … pessimistic about a prompt return to the Virtuous regime and inflation starts drifting in response to a fiscal imbalance. Shocks …

minimizing the variance of inflation as the policy objective. Following current developments in the theory of fiscal … unique equilibrium. The responses of inflation to various structural disturbances in the constant money growth rate … of nominal government debts (bonds) reduces the variance of inflation in the passive monetary-active fiscal regime …

determinacy in the associated full-information, flex-price equivalent. The analysis follows from boundedness considerations on the …