JOURNAL ARTICLE
Cite JOURNAL ARTICLE
Style
Format
Inflation und Staatsverschuldung
Journal of Contextual Economics – Schmollers Jahrbuch, Vol. 101 (1981), Iss. 2 : pp. 113–126
Additional Information
Article Details
Neumann, Manfred J. M.
Abstract
The first part of the paper analyzes wealth and relative-price effects of debt finance on the price level and on the level of output. The second part deals with inflationary links between debt policy and monetary policy. Those links are: a legal commitment of the central bank to buy government debt without limit, a legal commitment of the central bank to fix exchange rates with currency areas where inflation is the order of the day, a continuous political pressure on the central bank to hold down interest rates. While facilitating debt finance those links set the stage for inflation.