Construct · 1 fields · 1 citations

fiscal theory of the price level: a standalone construct

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Monetary economics

the view that the price level adjusts so that the real value of government debt equals the present value of expected primary surpluses.

In monetary economics, fiscal theory of the price level refers to the view that the price level adjusts so that the real value of government debt equals the present value of expected primary surpluses. This meaning comes from Sims (1994) in Economic Theory.[1]

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Nearby constructs

debt3 fields · 3 citationsjingle · one word, three carriers discount3 fields · 4 citationsjingle · one word, three constructs government2 fields · 3 citationsjingle · one word, two constructs

References

Sims, C. A. (1994). A simple model for study of the determination of the price level and the interaction of monetary and fiscal policy. Economic Theory, 4(3), 381-399. https://doi.org/10.1007/bf01215378

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