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Understanding the fiscal theory of the price level

  • Lawrence J. Christiano
  • Terry J. Fitzgerald

Price stability is an important goal of public policy. To reach this goal, two key questions must be addressed: How can price stability be achieved? And, how much price stability is desirable? The authors review the fiscal theory of the price level, with special emphasis on its implications for the feasibility and desirability of price stability.

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Article provided by Federal Reserve Bank of Cleveland in its journal Economic Review.

Volume (Year): (2000)
Issue (Month): Q II ()
Pages: 2-38

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Handle: RePEc:fip:fedcer:y:2000:i:qii:p:2-38
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