to support the standard objection to such policies: that they will lead to uncontrollable inflation. Theoretical models … industrialization. An institutional case study of the period, complemented by a general-to-specific econometric analysis, finds no … support for a relationship between monetary financing and inflation. The findings lend support to recent calls for explicit …

steady states exist, a high-inflation trap can appear, and an economy will most probably converge to a high-inflation steady … threshold level reaches a high-inflation and low-capital steady state …

minimizing the variance of inflation as the policy objective. Following current developments in the theory of fiscal … monetary policies. The responses of inflation to various structural disturbances in the constant money growth rate …

This paper quantitatively assesses the effects of inflation shocks on the public debt-to-GDP ratio in 19 advanced … impulse responses by local projections both suggest that a 1 percentage point shock to inflation rate reduces the debt … higher inflation, even if accompanied by some financial repression, could reduce public debt burden only marginally in many …

quasi-fiscal deficit through the use of the inflation tax but as inflation increases money demand drops and there is a limit … high inflation can arise even if money demand is perfectly inelastic with respect to inflation and the real value of … interest payments is relatively low. The key insight is that if expected inflation is a function of the current state of the …

This paper analyses the macroeconomic effects of a protracted period of low and falling inflation rates when monetary … terms (debt-deflation channel). In this scenario, even cost-push shocks that in normal circumstances would reduce inflation …

households. Then, in contrast to the active monetary and passive fiscal policy regime, inflation moves oppositely from the … inflation target and a stronger reaction of interest rates to inflation increases the response of inflation to shocks. Moreover …, a higher level of public debt increases the response of inflation while a weaker reaction of taxes to debt decreases the …

We develop a theoretical framework to account for the observed instability of the link between inflation and fiscal … bank that has full control over inflation. When policy makers deviate from this Virtuous regime, agents conduct Bayesian … pessimistic about a prompt return to the Virtuous regime and inflation starts drifting in response to a fiscal imbalance. Shocks …

We investigate the roles of a time-varying inflation target and monetary and fiscal policy stances on the dynamics of … inflation in a DSGE model. Under an active monetary and passive fiscal policy regime, inflation closely follows the path of the … inflation target and a stronger reaction of monetary policy to inflation decreases the response of inflation to non …

This paper estimates a hidden Markov model where inflation is determined by government deficits financed through money … inflation expectations. The estimated sequence of monetized deficits provides an adequate account of inflation for the period … 196994. The paper then extends the model to analyze the possibility that fiscal policy can affect inflation expectations in a …