Macro Musings with David Beckworth cover image

Peter Stella on the Fiscal Theory of the Price Level

Macro Musings with David Beckworth

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The Quantity Theory of Fiscal Policy

The proper view of the quantity theory would maybe be a little more nuanced than what you outlined earlier and that is it would be limited to government liabilities actual government money. The monetary base wouldn't include necessarily m1 m2 i know robert luke has looked at broader measures that included a lot of private money but it would belimited as well to injections of the monetary base.

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