We calculate the effects of an increase in government spending financed with labor income taxes or inflation … losses from inflation. The financial sector increases with inflation, in accordance with the data. In standard cash …-in-advance models, in the presence of government transfers, it is optimal to finance the government with inflation. In our framework, it …

policy mix was tested - how often monetary policy (in inflation reports) analyses financial stability issues. This paper aims … to discuss the aforementioned objective. Design/methodology/approach A total of 648 inflation reports published by 11 … financial stability topics (mainly cyclical aspects of systemic risk) on average account for only 2%of inflation reports …

. 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 …

press—or, at modern central banks, tapping a few keys to create electronic funds—causes inflation, and inflation can destroy …’ worth of new money without any real hint of inflation. In the United States, for example, this “monetary finance” has … cheaply without serious inflation risk are like mineral wealth: valuable but limited. We therefore propose institutions that …