show that a feature of the optimal policy under commitment, unlike the one under discretion, is to entail stationary …

as part of an inflation-targeting framework. At the same time, Denmark is one of the worst growth performers during 2008 …

deficit bias. The objective of this paper is to assess sustainability of public debt. First, we use Cecchetti, et al. (2010 … inflation on provincial public debt, interest payments, and primary balance by using the framework of Liu, et al. (2009). Our …

government's Fiscal Strategy Report; (3) citizens' monitoring of and reaction to inflation and their inflation expectation …

depends on the idea each has of the workings of the economic system and on the influence each variable has on inflation and …

The fiscal theory states that inflation adjusts so that the real value of government debt equals the present value of … fiscal theory to interpret historical episodes, including the rise and fall of inflation in the 1970s and 1980s, the long … pegs, the ends of hyperinflations, currency crashes, and the success of inflation targets. Going forward, fiscal theory …

minor. In contrast, the debt bias affects debt, deficits and inflation, but has a minor impact on expenditure and welfare. I … interest rate it renders fiscal impatience (its debt bias) irrelevant, but still faces its expenditure bias. I find that the … expenditure bias has a major impact on welfare through higher public spending, while the effect on other policies is relatively …

and debt. Mainstream economists have raised issues of excessive inflation, “crowding out” of private sector investment … rates and inflation, not to mention the private sector’s loss of a risk-free, interest-bearing alternative to cash. This is … inflation, exacerbate wealth disparity or have other harmful effects. These are serious problems and they need to be addressed …