Series: IMF Working Papers
Author(s): Bernardin Akitoby , Takuji Komatsuzaki , and Ariel Binder
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 10 June 2014
Keywords: debt drisis, G7, soverign debt, average inflation, nominal interest rates, real interest rates, increase in inflation, International Lending and Debt Problems,
This paper investigates the impact of low or high inflation on the public debt-to-GDP ratio in the G-7 countries. Our simulations suggest that if inflation were to fall to zero for five years, the average net debt-...