are now attempting to lower debt ratios. We analyze past debt reduction episodes and find inflation and the real interest … rare. Interestingly, inflation episodes tended to be with independent central banks and low real interest rates …

Low and stable inflation requires an appropriate fiscal framework aimed at stabilizing government debt. Historically …, trend inflation is critically influenced by actual or perceived changes to this framework, while cost-push shocks only … account for short-lasting movements in inflation. Before the pandemic, a moderate level of fiscal inflation has counteracted …

Is inflation 'always and everywhere a monetary phenomenon' or is it fundamentally a fiscal phenomenon? The answer … market imperfections. These ingredients allow for both interpretations of the inflation process in a financially constrained … important identifying restrictions on the observed pattern between inflation and measures of financial and fiscal stress, to the …