Préférence pour la liquidité, effet de richesse et théorie budgétaire du niveau des prix (Liquidity preference, the real wealth effect and the fiscal theory of the price level) (in French with English summary)

Though the promoters of the fiscal theory of the price level consider it as a counterrevolution to the Quantity theory, by demonstrating that price determination is also fiscally driven, we show that the standard framework they use is relevant only when public debt is monetised in the long run. The distinction with the Quantity theory is thus very thin. We propose to modify this framework by applying Keynes liquidity preference theory to public debt holdings. We hence deny money its role as a store of value. Finally, we develop the conditions under which the fiscal theory holds.