that this over-proportionality is stronger for the fiscal multiplier on inflation than on output. We relate this finding to … on output and, in particular, also on inflation in the euro area under alternative settings for monetary policy. We …

fiscal policy interventions caused by government purchases. We estimate the government spending multiplier to be above 1 …

. 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 …

adamant about preventing a rise in inflation? The large fiscal imbalance brings about inflationary pressures, triggering a … spiral of higher inflation, output contraction, and further debt accumulation. A coordinated commitment to inflate away the …

ordering these consolidation strategies by multiplier size or their welfare consequences leads to very different rankings. With …

tied to how much inflation it generates, which in turn hinges on monetary-fiscal adjustments that ultimately finance the … raises taxes to finance transfers while in the fiscal regime, inflation rises, effectively imposing inflation taxes on public … debt holders. We show analytically in a simple model how the fiscal regime generates larger and more persistent inflation …

We show that the effectiveness of redistribution policy is tied to how much inflation it generates, and thereby to … while in the fiscal regime, inflation rises, imposing inflation taxes on public debt holders. We show analytically that the … fiscal regime generates larger and more persistent inflation than the monetary regime. In a two‐sector model, we quantify the …