During the recent inflation episode, the paradigm of separated objectives for monetary and fiscal policies has shown … some limits. Fiscal policies have helped mitigate inflation. We advocate for the emergence of a new paradigm that gives …

-side shocks, the role of Modern Monetary Theory (MMT) in financing COVID rescue plans, the effect of the US, India, Eurozone and … China’s post-COVID economies on emerging and transitioning economies, and the resurgence of inflation. This edition includes … edition contains several brand-new cases and media articles that are carefully positioned to relate explicitly to theory, and …

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 …