Indeterminacy, bubbles, and the fiscal theory of price level determination

• 成果类型: Article
• 署名作者: McCallum, BT
• 署名单位: Carnegie Mellon University; National Bureau of Economic Research
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/S0304-3932(00)00048-9
• 发表日期: 2001
• 页码: 19-30
• 关键词: price level determination; fiscal policy; bubbles; indeterminacy

摘要

The recently developed fiscal theory of price level determination contends that then is an important class of policy rules in which there exists a unique rational expectations solution that shows: the price level to be dependent upon fiscal policy and independent of monetary variables. The present paper argues, however, that there is an alternative solution to these models: that has entirely traditional (or 'monetarist') properties. This latter solution is arguably more plausible since it is the solution that is typically regarded as the bubble-free 'fundamentals' solution. The paper's analysis involves the specification of feasible instrument variables. (C) 2001 Published by Elsevier Science B.V.