Farmer, Roger E. A.; Zabczyk, Pawel - 2019
The Fiscal Theory of the Price Level (FTPL) is the claim that, in a popular class of theoretical models, the price … show that the FTPL breaks down. In our model, the price level and the real interest rate are indeterminate, even when … level is sometimes determined by fiscal policy rather than monetary policy. The models where this claim has been established …