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How fiscal policy affects the price level: lessons from a not so distant past

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  • Antipa, P.

Abstract

The last decade has witnessed large-scale debt accumulation in a number of developed countries. Such increases in debt levels raise questions about the sustainability of public finances and risks of debt monetisation. This letter analyses a historical case study of significant debt accumulation – Britain during the Napoleonic Wars. The author provides evidence on how expectations regarding the sustainability of public finances can affect the price level under extraordinary circumstances.

Suggested Citation

  • Antipa, P., 2015. "How fiscal policy affects the price level: lessons from a not so distant past," Rue de la Banque, Banque de France, issue 13, November..
    • Handle: RePEc:bfr:rueban:2015:13
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    References listed on IDEAS

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