| 来源类型 | Discussion paper
|
| 规范类型 | 论文
|
| 来源ID | DP12769
|
| DP12769 Prices and Inflation when Government Bonds are Net Wealth |
| Marcus Hagedorn
|
| 发表日期 | 2018-03-02
|
| 出版年 | 2018
|
| 语种 | 英语
|
| 摘要 | In this paper I show that models in which government bonds are net wealth - that is, their value exceeds that of tax liabilities (Barro, 1974) - offer a new perspective on several issues in monetary economics. First and foremost, prices and inflation are jointly and uniquely determined by fiscal and monetary policy. In contrast to the conventional view, the long-run inflation rate here is, in the absence of output growth, and even when monetary policy operates an interest rate rule with a different inflation target, equal to the growth rate of nominal fiscal variables, which are controlled by fiscal policy. This novel theory also offers a different perspective on the fiscal and monetary transmission mechanism, policies at the zero-lower bound, U.S. inflation history, recent attempts to stimulate inflation in the Euro area and several puzzles which arise in New Keyensian models
during a liquidity trap. To derive my findings, I first use a reduced form approach in which
households derive utility from holding bonds. I prove how and for which policy rules the
price level is globally determinate, then showing that the reduced form results carry over to
a Bewley-Imrohoroglu-Huggett-Aiyagari heterogenous agent incomplete markets model. |
| 主题 | Monetary Economics and Fluctuations
|
| 关键词 | Price level determinacy
Ricardian equivalence
Incomplete markets
inflation
monetary policy
Fiscal policy
Policy coordination
|
| URL | https://cepr.org/publications/dp12769
|
| 来源智库 | Centre for Economic Policy Research (United Kingdom)
|
| 资源类型 | 智库出版物
|
| 条目标识符 | http://119.78.100.153/handle/2XGU8XDN/541578
|
推荐引用方式
GB/T 7714 |
Marcus Hagedorn. DP12769 Prices and Inflation when Government Bonds are Net Wealth. 2018.
|
除非特别说明，本系统中所有内容都受版权保护，并保留所有权利。
