"Stepping on a Rake: the Fiscal Theory of Monetary Policy" is novel paper, only published inwards the European Economic Review. This link gets you lot gratis access, but only for the adjacent few days. After that, I tin alone post service the last manuscript. (I held off sending this hoping the EER would cook the figure placement inwards the html version, but that didn't happen.)
The newspaper is almost how the financial theory of the cost marker tin depict monetary policy. Even without monetary, pricing, or financial frictions, the fundamental banking concern tin cook involvement rates. In the presence of long-term debt higher involvement rates atomic number 82 to lower inflation for a while. Interest charge per unit of measurement targets, frontwards guidance, in addition to quantitative easing all travel past times the same mechanism. The newspaper every bit good derives Chris Sims' "stepping on a rake" newspaper which makes that point, in addition to integrates financial theory amongst a detailed novel Keynesian model inwards continuous time.
The newspaper is almost how the financial theory of the cost marker tin depict monetary policy. Even without monetary, pricing, or financial frictions, the fundamental banking concern tin cook involvement rates. In the presence of long-term debt higher involvement rates atomic number 82 to lower inflation for a while. Interest charge per unit of measurement targets, frontwards guidance, in addition to quantitative easing all travel past times the same mechanism. The newspaper every bit good derives Chris Sims' "stepping on a rake" newspaper which makes that point, in addition to integrates financial theory amongst a detailed novel Keynesian model inwards continuous time.
