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A central equation for the fiscal theory of the price level (FTPL) is the government budget constraint (or \government …
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The paper analyzes the dynamic effects of a total factor productivity shock and an interest rate risk premium shock in a highly indebted open economy. In contrast to the standard open economy framework, search unemployment and wage bargaining are introduced. We find that a negative total factor...
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A central equation for the fiscal theory of the price level (FTPL) is the government budget constraint (or “government …
Persistent link: https://www.econbiz.de/10012929186
A central equation for the fiscal theory of the price level (FTPL) is the government budget constraint (or "government …
Persistent link: https://www.econbiz.de/10012942155
stance of monetary/fiscal policy. Accounting for risk premia in the fiscal theory allows the government portfolio to affect … fiscal theory directly depend on the conditional nominal term premium, giving rise to an optimal debt maturity policy that is …
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