Fiscal Policy and the Price Level

Abstract This paper studies the issue of price stability in a continuous time optimizing general equilibrium model with overlapping generations. It is shown that fiscal policy has effects on nominal variables. Fiscal expansions are inflationary even when the government intertemporal budget constraint is respected for any prices sequence and there is no recourse to money financing. Our results shed new light on the interaction between fiscal policy and nominal prices.

MoreLess

Year of publication:	2005
Authors:	Annicchiarico, Barbara ; Marini, Giancarlo
Published in:	Topics in Macroeconomics. - De Gruyter, ISSN 1534-5998, ZDB-ID 2040065-2. - Vol. 5.2005, 1
Publisher:	De Gruyter
Subject:	Fiscal Policy \| Price Stability

Online Resource

Check full text access |

More access options

Check Google Scholar

In libraries world-wide (WorldCat)

In German libraries (KVK)

subito order

I need help

More details

Type of publication:	Article
Type of publication (narrower categories):	research-article
Language:	English
Other identifiers:	10.2202/1534-5998.1225 [DOI]
Source:	Other ZBW resources

Persistent link: https://www.econbiz.de/10014588385