Préférence pour la liquidité, effet de richesse et théorie budgétaire du niveau des prix (Liquidity preference, the real wealth effect and the fiscal theory of the price level) (in French with English summary)

Jerome Creel

No 2001-06, Documents de Travail de l'OFCE from Observatoire Francais des Conjonctures Economiques (OFCE)

Abstract: Though the promoters of the fiscal theory of the price level consider it as a counterrevolution to the Quantity theory, by demonstrating that price determination is also fiscally driven, we show that the standard framework they use is relevant only when public debt is monetised in the long run. The distinction with the Quantity theory is thus very thin. We propose to modify this framework by applying Keynes liquidity preference theory to public debt holdings. We hence deny money its role as a store of value. Finally, we develop the conditions under which the fiscal theory holds.

JEL-codes: E31 E52 (search for similar items in EconPapers)
Date: 2001
References: Add references at CitEc
Citations:

Published in Economies et Sociétés, tome XXXVI, no.2, série " Monnaie ", ME, no.4, February 2002.

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:fce:doctra:0106

Access Statistics for this paper

More papers in Documents de Travail de l'OFCE from Observatoire Francais des Conjonctures Economiques (OFCE) Contact information at EDIRC.
Bibliographic data for series maintained by Francesco Saraceno ().