Price-level determinacy without control of a monetary aggregate
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The positive relationship between fiscal deficit and inflation follows the fiscal theory of price level, which attributes inflation as a fiscal phenomenon.
“The positive relationship between fiscal deficit and inflation follows the proposition of the fiscal theory of price level, which attributes inflation as a fiscal phenomenon (Woodford, 1995; Cochrane, 2001; Sims, 2011).”
From Are fiscal deficits inflationary in Nigeria? New evidence from bounds testing to cointegration with structural breaks (2021) · cites this paper as Woodford, 1995
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A Fiscal Theory of Persistent Inflation
Bianchi, F., Faccini, R., & Melosi, L. (2023) · The Quarterly Journal of Economics · doi:10.1093/qje/qjad027 · Cited by 116 · see citing works
Fasanya, I., Fajobi, A., & Adetokunbo, A. (2021) · Economic Annals · doi:10.2298/eka2128123f · Cited by 8 · see citing works
- Authors
- Woodford, M.
- Affiliations
- Columbia University (US)
- Corresponding author
- Woodford, M
- ORCID
- Woodford, M
- Venue
- Carnegie-Rochester Conference Series on Public Policy
- Publisher
- Elsevier BV
- Published
- 1995-12
- Volume
- 43
- Issue
- 1
- Pages
- 1-46
- ISSN
- 0167-2231 (ISSN-L)
- OpenAlex
- W2103820029
- Cited by
- 472
- References
- 0
- Citations by year
- 2026: 17 · 2025: 26 · 2024: 35 · 2023: 25 · 2022: 26 · 2021: 25 · 2020: 25 · 2019: 9 · 2018: 20 · 2017: 15 · 2016: 15 · 2015: 19 · 2014: 17 · 2013: 12 · 2012: 16
- FWCI
- 2.86
- Type
- conference paper
- Language
- en
- Open access
- green
- www.nber.org
- Locations
- Carnegie-Rochester Conference Series on Public Policy (publishedVersion)
- RePEc: Research Papers in Economics (submittedVersion)
- Topics
- Social Sciences › Economics, Econometrics and Finance › General Economics, Econometrics and Finance › Monetary Policy and Economic Impact
- Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Economic theories and models
- Social Sciences › Economics, Econometrics and Finance › General Economics, Econometrics and Finance › Economic Theory and Policy
- Keywords
- money supply endogeneity, interest rate peg, free banking, fiscal theory of the price level, state liability, monetary policy, central bank
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