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's fiscal theory of the price level, according to which for certain fiscal rules the (initial) price level is independent of the …
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's fiscal theory of the price level, according to which for certain fiscal rules the (initial) price level is independent of the …
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The paper answers three questions.(1) Does it matter if a central bank suffers a large capital loss? (2) Can the central bank become insolvent? (3) When, how and by whom should the central bank be recapitalised?
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