We examine the relationship between inflation and fiscal sustainability with a two-step approach. In the first step, we … various measures of inflation such as headline inflation, core inflation, energy inflation, and food inflation affect the … estimate of fiscal sustainability found previously. Our findings indicate that higher inflation rates contribute positively to …

Recent work on money and endogenous growth finds modest welfare costs of inflation. Furthermore, high inflation reduces … rate of inflation depending on the elasticity of labor supply. Considering the transition dynamics following a change in … the monetary policy, the optimal quarterly inflation rate is found to amount to approximately 3.5% in the benchmark case …

with inflation targeting, characterized by relocation shocks for young agents, which in turn generates a role for money … productive in our model, a higher inflation-target would translate into higher growth, but under multiple equilibria, this is not …