Public Debt and Changing Inflation Targets
| Autor: | Michael U. Krause, Stéphane Moyen |
|---|---|
| Rok vydání: | 2016 |
| Předmět: |
Inflation
Macroeconomics 050208 finance Inflation targeting media_common.quotation_subject education 05 social sciences Debt-to-GDP ratio Recourse debt jel:H63 jel:E52 jel:E31 External debt humanities 0502 economics and business Economics Internal debt 050207 economics Real interest rate Debt levels and flows public debt learning inflation target callable perpetuity debt maturity General Economics Econometrics and Finance health care economics and organizations media_common |
| Zdroj: | American Economic Journal: Macroeconomics. 8:142-176 |
| ISSN: | 1945-7715 1945-7707 |
| DOI: | 10.1257/mac.20130014 |
| Popis: | What are the effects of a higher central bank inflation target on the burden of real public debt? Several recent proposals have suggested that even a moderate increase in the inflation target can have a pronounced effect on real public debt. We consider this question in a New Keynesian model with a maturity structure of public debt and an imperfectly observed inflation target. We find that moderate changes in the inflation target only have significant effects on real public debt if they are essentially permanent. Moreover, the additional benefits of not communicating a change in the inflation target are minor. (JEL E12, E31, E52, H63) |
| Databáze: | OpenAIRE |
| Externí odkaz: |
|