The fiscal theory of the price level (FTPL) has attracted much attention but disagreement remains concerning its defining characteristics. Some writers have emphasized implications regarding interest-rate pegging and determinacy of rational expectations solutions, whereas others have stressed...

Recent analysis by Clarida, Galí, and Gertler (1999), Jensen (2002), Svensson and Woodford (1999), Walsh (2002), and especially Woodford (1999a, 1999b, 2000) has been highly productive in advancing the profession’s understanding of optimal monetary policy. Specifically, these papers emphasize...

Incluye bibliografía ; We examine the role of money in three environments: the New Keynesian model with separable utility and static money demand ; a nonseparable utility variant with habit formation ; and a version with adjustment costs for holding real balances. The last two variants imply...