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• W2115324391 abstract "The mainstream literature on monetary policy games under output persistence posits that: a) monetary regimes do not affect real variables in the steady state; b) optimal institutional design should entirely remove the inflation bias. We show that neither result necessarily holds if output persistence originates from debt dynamics and distortionary taxation. First, monetary delegation induces a strategic use of debt policy affecting steady-state distortions. Second, the reduction of such distortions may require monetary institutions that tolerate an inflation rate above the socially optimal level." @default.
• W2115324391 created "2016-06-24" @default.
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• W2115324391 date "2000-11-01" @default.
• W2115324391 modified "2023-09-27" @default.
• W2115324391 title "Revisiting Public Debt and Inflation: Fiscal Implications of an Independent Central Banker." @default.
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