The fiscal theory says that the price level is determined by the ratio of nominal debt to the present value of real … primary surpluses. I analyze long-term debt and optimal policy in the fiscal theory. I find that the maturity structure of the … debt matters. For example, it determines whether news of future deficits implies current inflation or future inflation …

In models with complete markets, targeting core inflation enables monetary policy to maximize welfare by replicating … stabilize price movements in the flexible price sector. Also, in the presence of financial frictions, stabilizing core inflation … frictions a welfare-maximizing central bank should adopt flexible headline inflation targeting--a target based on headline …

comparisons of productivity growth across decades and among nations. This paper serves a dual purpose of reviewing compactly the … affect international comparisons of inflation and output growth. The traditional problem of substitution bias in the Consumer … measurement methods tend to overstate the recent productivity performance of U.S. relative to European manufacturing, with an …

, productivity, the price level, money and credit stocks during each episode. Two booms stand out in terms of their length and rate … rapid real growth and productivity advance, suggesting that booms are driven at least partly by fundamentals. We find no … consistent relationship between inflation and stock market booms, though booms have typically occurred when money and credit …

We review the fiscal theory of the price level. We place special emphasis on the theory's implications for the …

multiple solutions in rational expectations (RE) models. In three of these cases--involving inflation forecast targeting, the … zero-lower bound deflation trap, and the fiscal theory of the price level--analysis based on E-stability and adaptive …

A new theory of price determination suggests that if primary surpluses are independent of the level of debt, the price …

We demonstrate that the Fiscal Theory of the Price Level (FTPL) cannot be used to determine the price level uniquely in …