deficits which backs debt and attenuates fiscal inflation. A dynamic r -- g stability criterion characterizes the set of … with inflation. Monetary policy which follows the Taylor principle can be consistent with a unique stable equilibrium under …

inflation in order to stabilize the expectations of households, firms and innovators. Endogenous growth provides a self … debt-stabilizing inflation when current fiscal deficits are not backed by future fiscal surpluses. Because growth creates … unique stable equilibrium, provided that the policy permits r−g to fall with inflation. …

. We show that the relation between growth and inflation, as well as the existence and uniqueness of the balanced growth …