Does fiscal stance affect inflation expectations? Evidence for European economies
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DOI: 10.1016/j.eap.2020.09.010
Abstract: Abstract According to the fiscal theory of the price level, in a non-Ricardian regime, high public debt should lead to a price-level increase so as to fulfill intertemporal government budget constraint. Forward-looking agents should anticipate… read more here.
Keywords: inflation; inflation expectations; fiscal stance; public debt ... See more keywords