Arbeitspapier
The fiscal theory of the price level in a world of low interest rates
A central equation for the fiscal theory of the price level (FTPL) is the government budget constraint (or "government valuation equation"), which equates the real value of government debt to the present value of fiscal surpluses. In the past decade, the governments of most developed economies have paid very low interest rates, and there are many other periods in the past in which this has been the case. In this paper, we revisit the implications of the FTPL in a world where the rate of return on government debt may be below the growth rate of the economy, considering different sources for the low returns: dynamic inefficiency, the liquidity premium of government debt, or its favorable risk profile.
- Sprache
-
Englisch
- Erschienen in
-
Series: Working Paper ; No. 2017-25
- Klassifikation
-
Wirtschaft
- Thema
-
Finanzpolitik
Inflationsrate
Preisniveau
Öffentliche Schulden
Zins
Risikoprämie
Theorie
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Bassetto, Marco
Cui, Wei
- Ereignis
-
Veröffentlichung
- (wer)
-
Federal Reserve Bank of Chicago
- (wo)
-
Chicago, IL
- (wann)
-
2017
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:44 MEZ
Datenpartner
Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Bassetto, Marco
- Cui, Wei
- Federal Reserve Bank of Chicago
Entstanden
- 2017
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