In response to the Global Financial Crisis, central banks engaged in large-scale asset purchases funded by the issuance of reserves. These "unconventional" policies continued during the pandemic, so that by 2022 central banks' balance sheets had grown up to ten-fold. As a result of rapidly...

The fiscal theory states that inflation adjusts so that the real value of government debt equals the present value of real primary surpluses. Monetary policy remains important. The central bank can set an interest rate target, which determines the path of expected inflation, while news about the...

Early research work confirms that the use of the new European currency, the euro, could create an effect of money illusion: expressed in euros, perceived prices seem lower and price elasticity diminished. But it also concludes on the complexity of the relationship between prices, currency unit...

The arrival in France of the euro in 2002, and the withdrawal of the franc, have been anticipated within many companies in all operational areas (payroll, billing and accounting for example). As far as price policy is concerned, the company must determine, beyond the compulsory legal conversion,...

We develop a new class of general equilibrium models with partially unfunded debt to propose a fiscal theory of trend inflation. In response to business cycle shocks, the monetary authority controls inflation, and the fiscal authority stabilizes debt. However, the central bank accommodates...

In the first section of this paper, the author demonstrates the crucial significance of anchoring symbolically a currency in the representation of a social whole, not least when practical and technical problems bound up with the creation of a new unit of account and the associated means of...

Les nations du sud de la zone Euro ont connu la prospérité dans les années qui ont suivi la création de la monnaie unique. Le bond de la consommation et l’élévation du niveau de vie se sont hélas révélés être des mirages. En favorisant un endettement massif, l’Euro a encouragé un...