Journal Article

Fiscal policy and expected inflation


Abstract: Despite U.S. fiscal problems, the Fed appears to still retain excellent inflation credibility with financial markets? Although confidence in the Fed might explain the quiescence of inflation expectations, the structure of U.S. government debt may be more important? [I]nflating away the U.S. debt simply would not work because a high proportion of the debt is in short-term or inflation-protected securities.

Keywords: Fiscal policy; Inflation (Finance);

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File(s): File format is application/pdf http://research.stlouisfed.org/publications/es/11/ES1108.pdf

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Bibliographic Information

Provider: Federal Reserve Bank of St. Louis

Part of Series: Economic Synopses

Publication Date: 2011

Order Number: 8