Traditional views on monetary-fiscal interactions suggest that fiscal deficits can be stabilised through changes in taxes, government spending, or inflation. This column examines how economic growth driven by technological innovation affects price stability and the sustainability of public debt. It argues that there is another stabilisation channel for public debt: economic growth. Increased demand boosts research and development, leading to technology growth which acts as a self-financing mechanism for unfunded deficits. Thus, debt-driven inflation can be less severe than commonly believed. Monetary policy should focus on the dynamics of the real interest rate vis-à-vis the long-term growth rate, rather than considering only the real rate. […]