01901cas a2200265 a 4500 AALejournalIMF016081 230101c9999 xx r poo 0 0eng d 5.00 USD 9781513521596 1018-5941 BD-DhAAL BD-DhAAL Fukunaga, Ichiro. Inflation and Public Debt Reversals in Advanced Economies / Ichiro Fukunaga, Takuji Komatsuzaki, Hideaki Matsuoka. Washington, D.C. : International Monetary Fund, 2019. 1 online resource (23 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper quantitatively assesses the effects of inflation shocks on the public debt-to-GDP ratio in 19 advanced economies using simulation and estimation approaches. The simulations based on the debt dynamics equation and estimations of impulse responses by local projections both suggest that a 1 percentage point shock to inflation rate reduces the debt-to-GDP ratio by about 0.5 to 1 percentage points. The results also suggest that the impact is larger and more persistent when the debt maturity is longer, but the difference from the benchmark case is not significant. These results imply that modestly higher inflation, even if accompanied by some financial repression, could reduce public debt burden only marginally in many advanced economies. Mode of access: Internet Komatsuzaki, Takuji. Matsuoka, Hideaki. IMF Working Papers; Working Paper ; No. 2019/297 Full text available on IMF http://elibrary.imf.org/view/journals/001/2019/297/001.2019.issue-297-en.xml IMF e-Library