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In this case, whatever was matched for the type rule would be replicated for each identifier match on the input stream. Input tokens int i,j would become output token stream int i; int j;. This token stream could then be repeatedly processed by the rules until nothing had changed, signifying the end of translation. Naturally, one could design rewrite rules that flip back and forth between two patterns causing an infinite loop. This is a well-known problem and with rewrite systems. I'm satisfied to send the simply call that a bug in your rewrite rules, though I'm sure I could come up with something nice to let you know precisely which rules were the problem.
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