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Advisor(s)
Abstract(s)
This paper investigates the dynamics of the price level in a continuous time monetary version of the Yaari-Blanchard overlapping generations model with capital accumulation. It is shown that there is an interaction between fiscal disci- pline and price stability when the government budget is intertemporally balanced. Relevant implications are that high debt and slow adjustment adversely affect both prices and capital accumulation.
Description
Keywords
Fiscal deficits Price stability Government debt
Pedagogical Context
Citation
Annicchiarico, Barbara e Giancarlo Marini (2005). "Government deficits, consumption, and the price level". Portuguese Economic Journal, 4(3):193-205
Publisher
Springer Verlag