Fiscal policy, interest rate shocks and prices

Economic Modelling

Volumn 20, Issue 2, 2003, Pages 361-382

  Leith, Campbell ^a   Warren, Paul ^a   Wren Lewis, Simon ^b  

^a UNIVERSITY OF GLASGOW   (United Kingdom)

^b UNIVERSITY OF EXETER   (United Kingdom)

Author keywords

Fiscal policy; Interest rates; Price level determination

Indexed keywords

EID: 0037333985     PISSN: 02649993     EISSN: None     Source Type: Journal    
DOI: 10.1016/S0264-9993(02)00058-5     Document Type: Article

References (14)

1. Blanchard, O.J., 1985. Debt, deficits and finite horizons. J. Polit. Econ. 93, 223-247.
2. Buiter, W.H., 1999. The fallacy of the fiscal theory of the price level, National Bureau of Economic Research Working Paper No. W7302.
3. Calvo, G., 1983. Staggered prices in a utility-maximising framework. J. Monet. Econ. 12, 383-398.
4. Canzoneri, M., Crumby, R., Diba, B., 1998. Is the price level determined by the needs of fiscal solvency? Centre for Economic Policy Research Working Paper No. 1772.
5. Hall, S., Henry, S.G.B., 1987. Forecasting with A Large Macro Model Incorporating Pervasive Consistent Expectations: NIESR Model 8' Large Scale Systems Theory and Applications, vol. 13, pp. 145-155.
6. Leeper, E.M., 1991. Equilibria under 'Active' and 'Passive' monetary and fiscal policies. J. Monet. Econ. 27, 129-147.
7. Leith, C., Wren-Lewis, S., 2000. Interactions between monetary and fiscal policy rules. Econ. J. 110, C80-C92.
8. McCallum, B.T., 1999. Theoretical issues pertaining to monetary unions, NBER Working Paper No. W7393.
9. Sargent, T.J., Wallace, N., 1975. Rational expectations, the optimal monetary instrument, and the optimal money supply rule. J. Polit. Econ. 83, 241-254.
10. Sims, C., 1992. Interpreting the macroeconomic time series facts: the effects of monetary policy. Eur. Econ. Rev. 36, 975-1000.
11. Sims, C., 1994. A simple model for the study of the determination of the price level and the interaction of monetary and fiscal policy. Econ. Theory 4, 381-399.
12. Woodford, M., 1995. Price-level determinacy without control of a monetary aggregate, Carnegie-Rochester Conference Series on Public Policy 43, 1-53.
13. Woodford, M., 1996. Control of the public debt: a requirement for price stability, National Bureau of Economic Research Working Paper No. 5684.
14. Wren-Lewis, S., 1989. Recent developments in the Institute's domestic macroeconomic model National Institute Economic Review No. 130.