arithmetic of Sargent and Wallace (1981) states that in a fiscally dominant regime tighter money now can cause higher inflation … normative content. I analyze conditions under which it is optimal in a welfare sense for the central bank to delay inflation by … aforementioned monetarist arithmetic holds, in the sense that if the government finds it optimal to delay inflation, it does so …

policy, and inflation control is subordinate. This article notes that the same is true of macroprudential policy, and it …

's (1981) unpleasant monetarist arithmetic, the closely connected fiscal theory of the price level (FTPL), and the monetarist … view of inflation. Second, we discuss how the recent inflationary episode has contributed to redistributing real resources …

, effective revenue ceilings induce an increase in deficit, debt and inflation. Under many scenarios, including recurrent adverse …

This paper proposes a quantitative theory of the interaction between private and public debt in an open economy …

sustainability. Under these circumstances, monetary policy impacts the probability of sovereign default alongside inflation dynamics …. Uribe (2006) studies the relationship between inflation and sovereign defaults with a model in which the central bank … controls a risky interest rate. He concludes that low inflation can only be maintained if the government sometimes defaults …