Inflation and Debt Rollover Under Low Interest Rates
构建了一个新凯恩斯主义世代交叠模型，研究在利率低于经济增长率时，通过债务滚转政策融资的财政赤字对通胀和社会福利的影响。
ABSTRACT We provide a New Keynesian model with overlapping generations to study the impact of temporary and permanent increases in fiscal deficits financed by debt rollover policy when interest rates are lower than economic growth rates. The debt rollover policy is feasible in the monetary regime but leads to very slow‐moving debt. This policy generates persistent inflation for a temporary increase in fiscal deficits, but persistent disinflation for a permanent increase. For social welfare, the debt rollover policy dominates the conventional fiscal rule to finance a temporary increase in fiscal deficits, but it is dominated if the increase is permanent.