A comprehensive account of how government deficits and debt drive
inflation Where do inflation and deflation ultimately come from?
The fiscal theory of the price level offers a simple answer: Prices
adjust so that the real value of government debt equals the present
value of taxes less spending. Inflation breaks out when people
don’t expect the government to fully repay its debts. The fiscal
theory is well suited to today’s economy: Financial innovation
undermines money demand, and central banks don’t control the
money supply or aggressively change interest rates, invalidating
classic theories, while large debts and deficits threaten inflation
and constrain monetary policy. This book presents a comprehensive
account of this important theory from one of its leading developers
and advocates. John Cochrane aims to make fiscal theory useful as a
conceptual framework and modeling tool, and for analyzing history
and policy. He merges fiscal theory with standard models in which
central banks set interest rates, giving a novel account of
monetary policy. He generalizes the theory to explain data and make
realistic predictions. For example, inflation decreases in
recessions despite deficits because discount rates fall, raising
the value of debt; specifying that governments promise to partially
repay debt avoids classic puzzles and allows the theory to apply at
all times, not just during periods of high inflation. Cochrane
offers an extensive rethinking of monetary doctrines and
institutions through the eyes of fiscal theory, and analyzes the
era of zero interest rates and post-pandemic inflation. Filled with
research by Cochrane and others, The Fiscal Theory of the Price
Level offers important new insights about fiscal and monetary
policy.
General
| Imprint: |
Princeton University Press
|
| Country of origin: |
United States |
| Release date: |
2023 |
| First published: |
2023 |
| Authors: |
John Cochrane
|
| Dimensions: |
254 x 178mm (L x W) |
| Format: |
Hardcover
|
| Pages: |
584 |
| ISBN-13: |
978-0-691-24224-8 |
| Categories: |
Books
|
| LSN: |
0-691-24224-0 |
| Barcode: |
9780691242248 |
Is the information for this product incomplete, wrong or inappropriate?
Let us know about it.
Does this product have an incorrect or missing image?
Send us a new image.
Is this product missing categories?
Add more categories.
Review This Product
No reviews yet - be the first to create one!
Welcome to Loot.co.za!
Sign in / Register |Wishlists & Gift Vouchers |Help | Advanced search
