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policy debates in recent years have paid more attention to interest rates and credit markets than to Friedman and Schwartz …
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The goal of this paper is twofold. First, we wish to better explain the relationship between Sargent and Wallace's (1981) unpleasant monetarist arithmetic, the closely connected fiscal theory of the price level (FTPL), and the monetarist view of inflation. Second, we discuss how the recent...
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