users in domestic currency, inflation, and the like. Under such circumstances, some countries decide to give up their …

1999 has targets for inflation and for the primary surplus. The main finding is that a fiscal regime characterized by a …

tax and transfer systems. With constant primary deficits, there exist two steady-states, and the price level and inflation … in the long-run real interest rate, leading to higher inflation for any given monetary policy. Our work highlights the … role of household heterogeneity and market incompleteness in determining inflation …

conduct of monetary policy. Specifically, the nominal interest rate and the inflation rate cannot be below their seigniorage … Pareto inferior side of the seigniorage Laffer curve, with an unnecessarily high inflation rate and nominal interest rate … inflation rates implied by a decline in the stock of government debt outstanding. Unless the economy is on the Pareto inferior …

I study the effects of long-run inflation and income taxation in an economy where households face uninsurable …

The fiscal theory says that the price level is determined by the ratio of nominal debt to the present value of real … primary surpluses. I analyze long-term debt and optimal policy in the fiscal theory. I find that the maturity structure of the … debt matters. For example, it determines whether news of future deficits implies current inflation or future inflation …

This study revisits and tests empirically the Portfolio Theory of Inflation (PTI), which analyzes how the effectiveness … (Bossone, The portfolio theory of inflation and policy (in)effectiveness, 2019). The PTI shows that when an economy is heavily … and policies aimed to stimulate output growth dissipate into domestic currency depreciation and higher inflation, with …

long run. In particular, we show that if monetary policy reacts aggressively to inflation, this supports a steady state … where inflation is close to the central bank's target. However, the same aggressive policy simultaneously favours the … inflation are lower and monetary policy is constrained by the effective lower bound. We discuss how fiscal policy can be used to …