108.6 percent. Inflation reduced this ratio about 40 percent within a decade. Yet there are some important differences …. It suggests that when economic growth is stalled, the U.S. debt overhang may trigger an increase in inflation of about 5 … percent for several years. This additional inflation would significantly reduce the debt ratio, even with some shortening of …

a burst of inflation that devalues the existing nominal debt stock. The probability of this outcome places upward … pressure on inflation expectations and poses a substantial challenge to a central bank pursuing an inflation target. The … distribution of outcomes for the path of future inflation has a fat right tail, revealing that only a small set of outcomes imply …