inflation in order to stabilize the expectations of households, firms and innovators. Endogenous growth provides a self … debt-stabilizing inflation when current fiscal deficits are not backed by future fiscal surpluses. Because growth creates … unique stable equilibrium, provided that the policy permits r−g to fall with inflation. …

The “fiscal theory of currency crises” (Daniel 2001; Corsetti and Maćkowiak 2005, 2006) claims that with long … inflation stabilization policy. It is shown that a stabilization policy that is successful in the absence of long-term nominal …-term debt is indexed to inflation …