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The Fiscal Theory of the Price Level (FTPL) is a promise to obtain price level determinacy even if the nominal interest … incomplete markets models or the mechanics of the Fiscal Theory of the Price Level. …
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This paper develops a dynamic general equilibrium model to assess the effects of temporary business tax cuts. First, the analysis extends the Ricardian equivalence result to an environment with production and establishes that a temporary tax cut financed by a future tax-increase has no real...
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