Eric Leeper on the Interactions of Fiscal and Monetary Policy
Macro Musings with David Beckworth
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The Price Level Is Supplying to Man
Fiscal theory of the price level is an asset pricing equation for government securities, government liabilities. So you have this future stream of primary surpluses, you discount to the present, and that affects the real value to day of government securities. Straightforward, pretty stink locket. Welt: What are the concrete steps that lead to a a lower inflation rate we observe in the economy? And what do bond traders do? What tor households do? Walk me through that scenario.
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