This paper proposes a new method to measure the impact of inflation on the real value of public debt. The distribution … provide new estimates, and the distribution of risk-adjusted inflation dynamics, for which we provide a novel copula estimator … using options data. We find that it is unlikely that inflation by itself can lower the U.S. fiscal burden significantly …

-expected inflation can lower the real value of outstanding government debt. Looking forward, we derive a formula for the debt burden that …-adjusted probability distributions for inflation at different horizons. The estimates suggest that it is unlikely that inflation will lower … the US fiscal burden significantly, and that the effect of higher inflation is modest for plausible counterfactuals. If …

The contrast between the early nineteenth century Argentinean experience of high inflation and the American experience … of low inflation is interpreted in terms of a dynamic monetary model of optimal taxation. It is argued that the two … the inflation tax may be viewed as an optimal solution to its wartime problems. By contrast, with the exception of the …