Bhattacharya, Joydeep; Haslag, Joseph H. - In: Economic and Financial Policy Review (1999) Q III, pp. 26-36
Sargent and Wallace (1981) study the feasibility of a bond-financed increase in government spending. In their "unpleasant monetarist arithmetic," Sargent and Wallace show how using bonds to finance a permanent deficit today may necessitate faster money growth in the future, yielding higher...