Understanding Inflation as a Joint Monetary–Fiscal Phenomenon

Eric Leeper and Campbell Leith

Chapter Chapter 30 in Handbook of Macroeconomics, 2016, vol. 2, pp 2305-2415 from Elsevier

Abstract: We develop the theory of price-level determination in a range of models using both ad hoc policy rules and jointly optimal monetary and fiscal policies and discuss empirical issues that arise when trying to identify monetary–fiscal regime. The chapter concludes with directions in which theoretical and empirical developments may go.

Keywords: Monetary policy; Fiscal policy; Price level determination; Optimal policy; Tax smoothing; Government debt; E4; E5; E6; H3; H6 (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (42)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:macchp:v2-2305

DOI: 10.1016/bs.hesmac.2016.03.012

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