stability. This inflation bias is increasing in the real value of government debt. Regime-switching probabilities are not … interest rate sufficiently moderately when inflation increases. Lower fiscal dominance risk, in turn, mitigates the inflation … bias. …

stability. This inflation bias is increasing in the real value of government debt. Regime-switching probabilities are not … interest rate sufficiently moderately when inflation increases. Lower fiscal dominance risk, in turn, mitigates the inflation … bias. …

focus on the possibility of achieving an optimal outcome, which generates no inflation bias, when more than one member is …

focus on the possibility of achieving an optimal outcome, which generates no inflation bias, when more than one member is …

, we show that an inflation bias as well as a deflationary bias exist as a steady-state outcome. We assess the predictions …

, we show that an inflation bias as well as a deflationary bias exist as a steady-state outcome. We assess the predictions …