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Understanding the Fiscal Theory of the Price Level

  • Lawrence J. Christiano
  • Terry J. Fitzgerald

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

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File URL: http://www.nber.org/papers/w7668.pdf
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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 7668.

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Date of creation: Apr 2000
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Publication status: published as Christiano, Lawrence J. and Terry J. Fitzgerald. "Understanding The Fiscal Theory Of The Price Level," FRB Cleveland - Economic Review, 2000, v36(2,Qtr-2), 2-37.
Handle: RePEc:nbr:nberwo:7668
Note: EFG
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  29. Barro, Robert J., 1974. "Are Government Bonds Net Wealth?," Scholarly Articles 3451399, Harvard University Department of Economics.
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  32. Andrew Atkeson & V.V. Chari & Patrick J. Kehoe, 1999. "Taxing capital income: a bad idea," Quarterly Review, Federal Reserve Bank of Minneapolis, issue Sum, pages 3-17.
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  36. Taylor, John B., 1993. "Discretion versus policy rules in practice," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 39(1), pages 195-214, December.
  37. Robert E. Lucas Jr. & Nancy L. Stokey, 1982. "Optimal Fiscal and Monetary Policy in an Economy Without Capital," Discussion Papers 532, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
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  39. Dupor, Bill, 2000. "Exchange rates and the fiscal theory of the price level," Journal of Monetary Economics, Elsevier, vol. 45(3), pages 613-630, June.
  40. Peter N. Ireland, 1998. "Does the Time-Consistency Problem Explain the Behavior of Inflation in the United States?," Boston College Working Papers in Economics 415, Boston College Department of Economics.
  41. Thomas J. Sargent & Neil Wallace, 1981. "Some unpleasant monetarist arithmetic," Quarterly Review, Federal Reserve Bank of Minneapolis, issue Fall.
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