We show that the effectiveness of redistribution policy is tied to how much inflation it generates, and thereby, monetary-fiscal adjustments ultimately finance transfers. In monetary regime, taxes increase transfers while in fiscal rises, imposing on public debt holders. analytically regime generates larger more persistent than regime. a two-sector model, we quantify effects CARES Act COVID rec...

Any economic system can be identified as cyclical fluctuations: ups and downs in the economy, which are caused by shocks of aggregate demand supply called business cycles, or cycles. The phases cycles rise,