Under the guidance of different theories and the problem of dominance and activeness, this study gives a survey of the rapidly growing literature on Fiscal Theory of Price Level, which opens up new horizons in a non–Ricardian world and questions the effectiveness of monetary policy on price...

Under the guidance of monetarist theory and the issue of dominance, this study is a survey of a rapidly growing literature on Fiscal Theory of Price Level, which opens up new horizons in a non –Ricardian world and questions the effectiveness of monetary policy on price level determination.