Is the price level determined by the needs of fiscal solvency?

• 成果类型: Article
• 署名作者: Canzoneri, MB; Cumby, RE; Diba, BT
• 署名单位: Georgetown University
• 刊物名称: AMERICAN ECONOMIC REVIEW
• ISSN/ISSBN: 0002-8282
• DOI: 10.1257/aer.91.5.1221
• 发表日期: 2001
• 页码: 1221-1238
• 关键词: monetary-policy; debt

摘要

The fiscal theory, of price determination suggests that if primary, surpluses evolve independently, of government debt, the equilibrium price level jumps to assure fiscal solvency. In this non-Ricardian regime, fiscal policy-not monetary policy-provides the nominal anchor. Alternatively, in a Ricardian regime, primary surpluses are expected to respond to debt in a way that assures fiscal solvency, and the price level is determined in conventional ways. This paper argues that Ricardian regimes are as theoretically, plausible as non-Ricardian regimes, and provide a more plausible interpretation of certain aspects of the postwar U.S. data than do non-Ricardian regimes.