Free-market economics is working surprisingly well
Which economic approach works depends a lot on where you start from.| www.noahpinion.blog
Which economic approach works depends a lot on where you start from.| www.noahpinion.blog
The Fiscal Theory of the Price Level has been percolating among monetary theorists for over three decades: Eric Leeper being the first to offer a formalization of the idea, with Chris Sims and Mich…| Uneasy Money
We often summarize that the fiscal theory is a theory of the price level: The price level adjusts so that the real value of government debt equals the present value of surpluses. That characterization seems to leave it to a secondary role. But with any even tiny price stickiness, fiscal theory is really a fiscal theory of inflation. The following two parables should make the point, and are a good starting point for understanding what fiscal theory is really all about. This point is somewhat b...| johnhcochrane.blogspot.com
