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This study revisits and tests empirically the Portfolio Theory of Inflation (PTI), which analyzes how the effectiveness … (Bossone, The portfolio theory of inflation and policy (in)effectiveness, 2019). The PTI shows that when an economy is heavily …
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A new theory of price determination suggests that if primary surpluses are independent of the level of debt, the price …
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We build a new Keynesian DSGE model consisting of two heterogeneous countries participating in a monetary union. We study how public debt consolidation in a country with high debt (like Italy) affects welfare in a country with solid public finances (like Germany). Our results show that debt...
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A new theory of price determination suggests that if primary surpluses are independent of the level of debt, the price …
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This paper applies the fiscal theory of price level determination to the case of a monetary union. A fiscal perspective …
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