16/06/2026 - 12:45 - Doyen 22 

Artur Doshchyn

(University of Bristol)

will give a presentation on 

Fiscal inflation and monetary policy under preferred habitat

Abstract

We integrate the Fiscal Theory of the Price Level with a preferred-habitat model of the bond market, in which yields are determined by the interaction of habitat investors and risk-averse arbitrageurs rather than by a consumption-smoothing representative household. Combining these frameworks lets us study fiscal inflation in an environment where term premia and bond prices reflect intermediary risk-bearing capacity as well as the level and the maturity composition of public debt. We use the framework to revisit how monetary, fiscal, and debt management policies jointly shape inflation.

(with Rigas Oikonomou and Martin Ellison)

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