Arbeitspapier
The Fiscal Theory of the Price Level with a Bubble
This paper incorporates a bubble term in the standard FTPL equation to explain why countries with persistently negative primary surpluses can have a positively valued currency and low inflation. It also provides an example with closed-form solutions in which idiosyncratic risk on capital returns depresses the interest rate on government bonds below the economy's growth rate.
- Language
-
Englisch
- Bibliographic citation
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Series: CESifo Working Paper ; No. 8278
- Classification
-
Wirtschaft
Financial Markets and the Macroeconomy
Monetary Policy
Comparative or Joint Analysis of Fiscal and Monetary Policy; Stabilization; Treasury Policy
- Event
-
Geistige Schöpfung
- (who)
-
Brunnermeier, Markus K.
Merkel, Sebastian
Sannikov, Yuliy
- Event
-
Veröffentlichung
- (who)
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Center for Economic Studies and ifo Institute (CESifo)
- (where)
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Munich
- (when)
-
2020
- Handle
- Last update
-
10.03.2025, 11:43 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Brunnermeier, Markus K.
- Merkel, Sebastian
- Sannikov, Yuliy
- Center for Economic Studies and ifo Institute (CESifo)
Time of origin
- 2020
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