Monetary-fiscal policy interactions and the price level
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Monetary-fiscal policy interactions and the price level background and beyond by Eric Michael Leeper

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Published by National Bureau of Economic Research in Cambridge, Mass .
Written in English


  • Fiscal policy,
  • Taxation,
  • Prices -- Econometric models

Book details:

Edition Notes

StatementEric M. Leeper, Tack Yun.
SeriesNBER working paper series -- working paper 11646., Working paper series (National Bureau of Economic Research) -- working paper no. 11646.
ContributionsYun, Tack., National Bureau of Economic Research.
The Physical Object
Pagination42 p. :
Number of Pages42
ID Numbers
Open LibraryOL17627883M

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Monetary and Fiscal Policy Interactions: An Empirical Evidence from Turkey: /ch While the role of fiscal policy in price level determination was neglected by the conventional theory, a new point of view was adapted by the Fiscal Theory ofAuthor: Asuman Oktayer, Nagihan Oktayer. Eric Leeper & Tack Yun, "Monetary-fiscal policy interactions and the price level:Background and beyond," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 13(4), pages , August.   Monetary-Fiscal Policy Interactions Eric M. Leeper debt and the price level. Monetary policy chooses the interest rate so that it responds only weakly—or not at all—to inflation, which permits expansions in government debt to raise the price level. Higher price levels reduce the real value of debt to make the debt-GDP ratio.   Table 4 reports the impacts of government purchases on the price level, which generally mimic the pattern for the multipliers. The larger the increase in demand, or final output, as measured by the multipliers, the larger is the impact on the price level. Not surprisingly, the largest impacts on the price level occur under passive monetary policy.

The Implication of Monetary and Fiscal Policy Interactions for the Price Levels: The Fiscal Theory of the Price Level Revisited Marzieh Assadi 1 Faculty of Social Science, the University of Golestan This Version: October Abstract This paper contributes to the empirical literature on the interaction between monetary and fiscal policy. Contradictory fiscal policy and monetary policy actions will have an indeterminate impact on the AD curve and therefore an indeterminate impact on the price level and real output. So, if the government takes expansionary fiscal policy action (shifting AD right) while the Federal Reserve engages in contractionary monetary policy (shifting AD left), the net effect will be . policy exhibits one degree of indeterminacy, then potentially unstable debt dynamics are needed to restore equilibrium determinacy, consistent with Leeper's notion of 'active' fiscal policy or, alternatively, with the view of the 'fiscal theory of the price level' expressed in Woodford () and Sims (). The single monetary policy and national fi scal policies interact in various ways. For instance, a reliable and stability-oriented monetary policy fosters stable infl ation expectations and low infl ation risk premia, both of which help to limit the level and volatility of long-term interest rates.

  To investigate the policy mix and monetary fiscal policy interactions, we calculate the joint transition matrix in Eq. and the results on the timing of joint monetary-fiscal regimes are illustrated in Fig. 2, Fig. 3, Fig. 4, Fig. 5, Fig. 6, Fig. 7. 9. Monetary-fiscal policy interaction and fiscal inflation: A Tale of three countries Martin KliemyAlexander Kriwoluzkyz Samad Sarferazx Septem Abstract We study the impact of the interaction between scal and monetary policy on the low-frequency relationship between the scal stance and in ation using cross-country data from to Monetary-fiscal policy interactions and the price level:Background and beyond. By Eric Leeper and Tack Yun. Cite. BibTex; Full citation; Abstract. The paper presents the fiscal theory of the price level in a variety of models, including endowment economies with lump-sum taxes and production economies with proportional income taxes. DOI: /s Corpus ID: Monetary-fiscal policy interactions and the price level:Background and beyond @article{LeeperMonetaryfiscalPI, title={Monetary-fiscal policy interactions and the price level:Background and beyond}, author={Eric M. Leeper and Tack Yun}, journal={International Tax and Public Finance}, .