This paper studies the issue of price stability in a continuous time optimizing general equilibrium model with overlapping generations. It is shown that fiscal policy has effects on nominal variables. Fiscal expansions are inflationary even when the government intertemporal budget constraint is respected for any prices sequence and there is no recourse to money financing. Our results shed new light on the interaction between fiscal policy and nominal prices

Annicchiarico, B., & Marini, G. (2005). Fiscal policy and the price level. TOPICS IN MACROECONOMICS, 5(1).

Fiscal policy and the price level

ANNICCHIARICO, BARBARA;MARINI, GIANCARLO
2005

Abstract

This paper studies the issue of price stability in a continuous time optimizing general equilibrium model with overlapping generations. It is shown that fiscal policy has effects on nominal variables. Fiscal expansions are inflationary even when the government intertemporal budget constraint is respected for any prices sequence and there is no recourse to money financing. Our results shed new light on the interaction between fiscal policy and nominal prices
Pubblicato
Rilevanza internazionale
Articolo
Sì, ma tipo non specificato
Settore SECS-P/01 - Economia Politica
English
Con Impact Factor ISI
Annicchiarico, B., & Marini, G. (2005). Fiscal policy and the price level. TOPICS IN MACROECONOMICS, 5(1).
Annicchiarico, B; Marini, G
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Utilizza questo identificativo per citare o creare un link a questo documento: http://hdl.handle.net/2108/46220
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