Is the Price Level in Norway Determined by Fiscal Policy?

Arbeitspapier

The Norwegian public sector has net financial assets. The fiscal theory of price determination applies equally to Norway and economies with net public debt: If primary surpluses evolve independently of nominal debt (or assets), the price level has to adjust to satisfy the intertemporal budget constraint of the public sector. In this 'non-Ricardian' regime, monetary policy cannot provide the nominal anchor. In the alternative 'Ricardian' regime, surpluses respond to debt, and monetary policy is the nominal anchor. The plausibility of NR regimes is disputed. I use fiscal data and oil prices to argue that the Norwegian regime is Ricardian.

Angaben zum Objekt

• ISBN: 82-7553-303-1
• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: Working Paper ; No. 2005/5

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook: General ; Comparative or Joint Analysis of Fiscal and Monetary Policy; Stabilization; Treasury Policy
• Thema: Ricardian regime ; price level determinacy ; fiscal policy ; nominal anchor

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Alstadheim, Ragna
• Ereignis: Veröffentlichung
• (wer): Norges Bank
• (wo): Oslo
• (wann): 2005

Weitere Informationen

• Handle: http://hdl.handle.net/10419/209852
• Letzte Aktualisierung: 10.03.2025, 11:44 MEZ