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Price level determination: Ricardian vs non-Ricardian policies

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  • Erdogdu, Oya Safinaz

Abstract

In that study we analyzed the U.S. inflation rate using the structural vector autoregression (SVAR) and the structural vector error correction models (SVECM) to compare different theories of price level: monetarist theory, unpleasant monetarist arithmetic and the fiscal theory of price level. Our results for the SVAR models favor the monetarist theory, whereas the SVECM indicate the relations given by unpleasant monetarist theory.

Suggested Citation

  • Erdogdu, Oya Safinaz, 2002. "Price level determination: Ricardian vs non-Ricardian policies," ISU General Staff Papers 200201010800001510, Iowa State University, Department of Economics.
    • Handle: RePEc:isu:genstf:200201010800001510
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