Leeper, E.M.; Leith, C. - In: Handbook of macroeconomics : volume 2, v. 2A-2B SET, (pp. 2305-2415). 2016
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...