Bhattarai, Saroj; Lee, Jae Won; Park, Woong Yong - In: Journal of Monetary Economics 67 (2014) C, pp. 93-108
households. Then, in contrast to the active monetary and passive fiscal policy regime, inflation moves oppositely from the … inflation target and a stronger reaction of interest rates to inflation increases the response of inflation to shocks. Moreover …, a higher level of public debt increases the response of inflation while a weaker reaction of taxes to debt decreases the …