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Understanding the Fiscal Theory of the Price Level

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  • Lawrence J. Christiano
  • Terry J. Fitzgerald

Abstract

We review the fiscal theory of the price level. We place special emphasis on the theory's implications for the feasibility of price stability.

Suggested Citation

  • Lawrence J. Christiano & Terry J. Fitzgerald, 2000. "Understanding the Fiscal Theory of the Price Level," NBER Working Papers 7668, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:7668
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    JEL classification:

    • E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies

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