. The risk of future regime shifts has encompassing effects on equilibrium. Inflation is systematically higher than it would … stability. This inflation bias is increasing in the real value of government debt. Regime-switching probabilities are not … interest rate sufficiently moderately when inflation increases. Lower fiscal dominance risk, in turn, mitigates the inflation …

Introduction -- Chapter 1: Back to the future – The return of inflation in the 2020s -- Chapter 2: Fundamentals – A … primer on what drives inflation -- Chapter 3: The US – Pandemic recovery and fiscal bazooka -- Chapter 4: Europe – Same, same …, Europe, and Asia -- Chapter 7: The inflation debate: The view from a central banker vs. a market practitioner -- Chapter 8 …

strongly than in the rational model after an inflationary supply shock to fully stabilize inflation. While fully stabilizing … inflation keeps output at potential, higher real interest rates mainly benefit wealthy households and increase the cost of …

, hyperinflation in Germany after World War I, inflation in Argentina since the 1980s, currency reform in Germany after WW II, and … precedents and proposals have included austerity, haircuts and the generation of inflation. Each way has advantages and …