persistent inflation. In response to business cycle shocks, the monetary authority controls inflation, and the fiscal authority … stabilizes debt. However, the central bank accommodates unfunded fiscal shocks, causing persistent movements in inflation, output …, and real interest rates. In an estimated quantitative model, fiscal inflation accounts for the bulk of inflation dynamics …

negative shock. The current low interest rate environment limits the tools the central bank can use to stabilize the economy … controlled rise of inflation to wear away a targeted fraction of debt. Under this coordinated strategy, the fiscal authority … increase in inflation to accommodate the emergency budget. In our model, the coordinated strategy enhances the efficacy of the …

inflationary pressure. In this case, default and inflation risks can reinforce each other. …

Low and stable inflation requires an appropriate fiscal framework aimed at stabilizing government debt. Historically …, trend inflation is critically influenced by actual or perceived changes to this framework, while cost-push shocks only … account for short-lasting movements in inflation. Before the pandemic, a moderate level of fiscal inflation has counteracted …

inflation. In response to business cycle shocks, the monetary authority controls inflation, and the fiscal authority stabilizes … debt. However, the central bank accommodates unfunded fiscal shocks, causing persistent movements in inflation, output, and … real interest rates. In an estimated quantitative model, fiscal trend inflation accounts for the bulk of inflation dynamics …

deficits which backs debt and attenuates fiscal inflation. A dynamic r -- g stability criterion characterizes the set of … with inflation. Monetary policy which follows the Taylor principle can be consistent with a unique stable equilibrium under …

Low and stable inflation requires an appropriate fiscal framework aimed at stabilizing government debt. Historically …, trend inflation is critically influenced by actual or perceived changes to this framework, while cost-push shocks only … account for short-lasting movements in inflation. Before the pandemic, a moderate level of fiscal inflation has counteracted …