on output and, in particular, also on inflation in the euro area under alternative settings for monetary policy. We … that this over-proportionality is stronger for the fiscal multiplier on inflation than on output. We relate this finding to …

financial crisis and speeds up exit from the crisis. The downside of coordination is variability in inflation and in the …

. The risk of future regime shifts has encompassing effects on equilibrium. Inflation is systematically higher than it would … 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 …

Does an inflation conservative central bank à la Rogoff (1985) remain desirable in a setting with endogenous fiscal … optimal inflation rate internalizing this distortion is positive, but lack of monetary commitment robustly generates too much … inflation. A conservative monetary authority thus remains desirable. Exclusive focus on inflation by the central bank recoups …

This paper provides a comprehensive empirical analysis of the role of discretionary fiscal policy for inflation … is difficult to find robust evidence of the fiscal policy stance or impulse impacting directly on inflation differentials …. We do find, however, support for an indirect effect of discretionary fiscal policy on inflation differentials working …