Canzoneri, Matthew B.; Cumby, Robert E.; Diba, Behzad T. - In: American Economic Review 91 (2001) 5, pp. 1221-1238
The fiscal theory of price determination suggests that if primary surpluses evolve independently of government debt, the equilibrium price level "jumps" to assure fiscal solvency. In this non-Ricardian regime, fiscal policy--not monetary policy--provides the nominal anchor. Alternatively, in a...