(real or deficit). Under monetary and fiscal policy coordination, the real spending multiplier is 3.4 and the deficit … spending multiplier is 3.8. However, when there is no policy coordination, that is, when the central bank is "goal independent …," the real spending multiplier is unchanged but the deficit spending multiplier is zero. Coordination failure may explain …

The fiscal theory states that inflation adjusts so that the real value of government debt equals the present value of … fiscal theory to interpret historical episodes, including the rise and fall of inflation in the 1970s and 1980s, the long … pegs, the ends of hyperinflations, currency crashes, and the success of inflation targets. Going forward, fiscal theory …

consequence of this may be an inappropriate stabilization of shocks. This paper addresses how policy coordination problems are …