This paper proposes a theory of the fiscal foundations of inflation based on imperfect knowledge and learning. The … scale and composition of the public debt, matter for inflation. As a result, fiscal policy constrains the efficacy of … monetary policy to anchor inflation expectations. The model predicts that the Great Moderation period would not have been so …

In Japan, the inflation rate declined to near-zero, whereas the monetary policy faced a zero lower bound (ZLB) in the … 1990s. We examine whether trend inflation had fallen to near-zero prior to the ZLB. To achieve this, we estimate Japanese … pre-2000 trend inflation developing a Markov-switching New Keynesian dynamic stochastic general equilibrium (DSGE) model …

high during 2016-2019, keeping inflation below the Reserve Bank's target band. Optimal monetary policy in 2016-2019 would …

high during 2016-2019, keeping inflation below the Reserve Bank's target band. Optimal monetary policy in 2016-2019 would …

the inflation–unemployment dynamics during the recession and COVID-19 times in India and the UK. Using a generalized … recession and eventually turn to stagflation in India due to inflation caused by the weak supply side. However, in the UK, the …