Our chapter reviews positive and normative issues in the interaction between monetary and
fiscal policy, with an emphasis on how views on policy coordination have changed over the …

The Fiscal Theory of the Price Level Page 1 Page 2 The Fiscal Theory of the Price Level john h.
cochrane princeton university press princeton and oxford Page 3 Copyright c 2023 by …

This review describes interactions between monetary and fiscal policies that affect
equilibrium price levels and interest rates by critically surveying theories about (a) optimal …

This paper argues that maintaining price stability requires not only commitment to an
appropriate monetary policy rule, but an appropriate fiscal policy rule as well.'Ricardian …

We develop the theory of price-level determination in a range of models using both ad hoc
policy rules and jointly optimal monetary and fiscal policies and discuss empirical issues that …

We ask how fiscal deficits are financed in environments with two key features:(i) nominal
rigidity, and (ii) a violation of Ricardian equivalence due to finite lives or liquidity constraints …

A dynamic stochastic general equilibrium (DSGE) model in which households have Epstein
and Zin recursive preferences is solved with perturbation. The parameters governing …

NBER WORKING PAPER SERIES UNDERSTANDING THE FISCAL THEORY OF THE PRICE
LEVEL Lawrence J. Christiano Terry J. Fitzgerald Working Page 1 NBER WORKING PAPER …

The fiscal theory determines the price level from the value of nominal government debt as a
claim to government primary surpluses, just as private stock is valued as a claim to corporate …

Our understanding of monetary policy is complicated by an indeterminacy problem: the
same path for the nominal interest rate is consistent with multiple equilibrium paths for …