A Requiem for the Fiscal Theory of the Price Level

A Requiem for the Fiscal Theory of the Price Level
Author :
Publisher : International Monetary Fund
Total Pages : 34
Release :
ISBN-10 : 9781513516196
ISBN-13 : 1513516191
Rating : 4/5 (191 Downloads)

Book Synopsis A Requiem for the Fiscal Theory of the Price Level by : Mr.Roger Farmer

Download or read book A Requiem for the Fiscal Theory of the Price Level written by Mr.Roger Farmer and published by International Monetary Fund. This book was released on 2019-10-11 with total page 34 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Fiscal Theory of the Price Level (FTPL) is the claim that, in a popular class of theoretical models, the price level is sometimes determined by fiscal policy rather than monetary policy. The models where this claim has been established assume that all decisions are made by an infinitely-lived representative agent. We present an alternative, arguably more realistic model, populated by sixty-two generations of people. We calibrate our model to an income profile from U.S. data and we show that the FTPL breaks down. In our model, the price level and the real interest rate are indeterminate, even when monetary and fiscal policy are both active. Our findings challenge established views about what constitutes a good combination of fiscal and monetary policies.


A Requiem for the Fiscal Theory of the Price Level Related Books

A Requiem for the Fiscal Theory of the Price Level
Language: en
Pages: 34
Authors: Mr.Roger Farmer
Categories: Business & Economics
Type: BOOK - Published: 2019-10-11 - Publisher: International Monetary Fund

GET EBOOK

The Fiscal Theory of the Price Level (FTPL) is the claim that, in a popular class of theoretical models, the price level is sometimes determined by fiscal polic
A Requiem for the Fiscal Theory of the Price Level
Language: en
Pages:
Authors: Roger E.A. Farmer
Categories:
Type: BOOK - Published: 2019 - Publisher:

GET EBOOK

We demonstrate that the Fiscal Theory of the Price Level (FTPL) cannot be used to determine the price level uniquely in the overlapping generations (OLG) model.
The Fiscal Theory of the Price Level
Language: en
Pages: 21
Authors: Fernando C. Ballabriga
Categories:
Type: BOOK - Published: 2004 - Publisher:

GET EBOOK

The Fallacy of the Fiscal Theory of the Price Level
Language: en
Pages: 0
Authors: Willem H. Buiter
Categories: Fiscal policy
Type: BOOK - Published: 2017 - Publisher:

GET EBOOK

A Requiem for the Fiscal Theory of the Price Level
Language: en
Pages: 34
Authors: Mr.Roger Farmer
Categories: Business & Economics
Type: BOOK - Published: 2019-10-11 - Publisher: International Monetary Fund

GET EBOOK

The Fiscal Theory of the Price Level (FTPL) is the claim that, in a popular class of theoretical models, the price level is sometimes determined by fiscal polic