Fiscal theory of the price level
The fiscal theory of the price level is the idea that government fiscal policy affects the price level: for the price level to be stable (to control inflation), government finances must be sustainable: they must run a balanced budget over the course of the business cycle, meaning they must not run a structural deficit. It is an unorthodox theory, which contrasts with the usual monetary theory of the price level, where the price level is primarily or exclusively determined by supply of money.
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Fiscal theory of the price level
The fiscal theory of the price level is the idea that government fiscal policy affects the price level: for the price level to be stable (to control inflation), government finances must be sustainable: they must run a balanced budget over the course of the business cycle, meaning they must not run a structural deficit. It is an unorthodox theory, which contrasts with the usual monetary theory of the price level, where the price level is primarily or exclusively determined by supply of money.
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The fiscal theory of the price ...... levant or simply wrong-headed.
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20,586,302
Wikipage revision ID
742,224,078
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The fiscal theory of the price ...... determined by supply of money.
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Fiscal theory of the price level
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