Kaplan, Greg; Nikolakoudis, Georgios; Violante, Giovanni L. - National Bureau of Economic Research - 2023
tax and transfer systems. With constant primary deficits, there exist two steady-states, and the price level and inflation … in the long-run real interest rate, leading to higher inflation for any given monetary policy. Our work highlights the … role of household heterogeneity and market incompleteness in determining inflation …