PL EN


2007 | 2 | 199-220
Article title

Foundations of the Fiscal Theory of Price Level

Authors
Title variants
Languages of publication
PL
Abstracts
EN
Looking for a theory that would explain the price level and inflation processes, as an alternative to quantitative theory of money, more and more frequently attention is turned towards the fiscal theory of price level (FTPL). According to this concept the price level is defined by intertemporal budgetary constraints, while inflation itself is always regarded as a fiscal phenomenon. Adherents to FTPL assume that if the intertemporal budget constraint and the so called non-Ricardian fiscal policy are taken into account, then the level of prices is defined in a unique way. There are two orientations within the FTPL, the first one focuses on the definiteness of price level, while the second embraces issues revolving around recommendations for economic policy making. An important conclusion derived from FTPL states that even a fully independent central bank is not able to guarantee the stability of price level.
Year
Issue
2
Pages
199-220
Physical description
Document type
ARTICLE
Contributors
author
  • P. Marszalek, Akademia Ekonomiczna w Poznaniu, Katedra Bankowosci, al. Niepodleglosci 10, 60-967 Poznan, Poland
References
Document Type
Publication order reference
Identifiers
CEJSH db identifier
07PLAAAA02755628
YADDA identifier
bwmeta1.element.123f8fcc-32fe-3279-9ac5-9eaf22583a3c
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