We develop a new class of general equilibrium models with partially unfunded debt to propose a fiscal theory of … 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 …

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 …

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 …

We develop a new class of general equilibrium models with partially unfunded debt to propose a fiscal theory of trend … 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 …

in inflation and real interest rates, leading to a fiscal theory of trend inflation. Fiscal trend inflation accounts for …-to-GDP ratio threatens US inflation stability. In response to business cycle shocks, the monetary authority controls inflation, and … the bulk of inflation dynamics. The current situation is in line with historical experience. Unfunded shocks sustain the …

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 … below-target inflation. The strategy results in only moderate levels of inflation by separating long-run fiscal …

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 … below-target inflation. The strategy results in only moderate levels of inflation by separating long-run fiscal …

controlled rise of inflation to wear away a targeted fraction of debt. Under this strategy, the fiscal authority introduces an … inflation to accommodate the emergency budget. In our model the coordinated strategy enhances the efficacy of the fiscal …-target inflation. This strategy results in only moderate levels of inflation by separating long-run fiscal sustainability from a short …

in inflation needed to stabilize the amount of Eurobonds issued in response to a large EA recession. National governments … benefits both high-debt and low-debt countries, generating a moderate increase in inflation that mitigates the recession and …