A Central Bank Theory of Price Level Determination

• 成果类型: Article
• 署名作者: Benigno, Pierpaolo
• 署名单位: Luiss Guido Carli University; Centre for Economic Policy Research - UK
• 刊物名称: AMERICAN ECONOMIC JOURNAL-MACROECONOMICS
• ISSN/ISSBN: 1945-7707
• DOI: 10.1257/mac.20190008
• 发表日期: 2020
• 页码: 258-283
• 关键词: monetary; POLICY

摘要

This paper develops a theory in which the central bank can control the price level without fiscal backing. It is shown that the remittances policy and the balance sheet of the central bank are important elements to specify. A central bank that is appropriately capitalized can succeed in controlling prices by setting the interest rate on reserves, holding short-term assets, and rebating its income to the treasury from which it has to maintain financial independence.