Oguro, Kazumasa; Sato, Motohiro - Center for Intergenerational Studies, Institute of … - 2012
This paper analyzes the impact of deflation and inflation on the real interest rates of GBs using an overlapping … periods of deflation. This paper also addresses the impact of fiscal inflation (i.e., monetizing all parts of the GB’s default … consolidation is low. Initial inflation accelerates the expected fiscal inflation, but initial deflation suppresses it. …