Comment on: “Monetary Policy, Bond Returns and Debt Dynamics” by Antje Berndt and Sevin Yeltekin

- Study debt-to-GDP ratios, inflation, and inflation risk proxies in U.S. data 1970-2012.
- In a simple model, government debt raises expected inflation and risk of inflationary recessions.
- In contrast, U.S. government debt-to-GDP not strongly related to inflation or inflation risk.
- Results highlight data limitations when estimating how government debt affects inflation risk.