Reflections on the Fiscal Theory of the Price Level
Year: 2002
Type: preprint
Abstract: In a world in which consumers correctly expect that both Ricardian and non-Ricardian policy regimes are possible in the future, the fiscal theory of the price level is valid, yet the price is indeterminate. This result does not rely on imposing that the initial stock of nominal bonds be strictly positive, and it does not require a surprise ex post revaluation of nominal assets.
Author: Weil, Philippe
Institution: Institut d'Etudes Politiques de Paris
Language: English
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W1570506523