Financial innovation challenges the foundations of monetary theory, and standard monetary
theory has not been very successful at describing the history of US inflation. Motivated by …

Where do inflation and deflation ultimately come from? The fiscal theory of the price level
offers a simple answer: Prices adjust so that the real value of government debt equals the …

The long period of quiet inflation at near zero interest rates, with large quantitative easing,
suggests that core monetary doctrines are wrong. It suggests that inflation can be stable and …

Unexpected inflation devalues nominal government bonds. It must therefore correspond to a
decline in expected future surpluses, or a rise in their discount rates, so that the real value of …

This paper proposes a theory of the fiscal foundations of inflation based on imperfect
knowledge and learning. Because imperfect knowledge breaks Ricardian equivalence, the …

Proposals for'inflation targeting'as a strategy for monetary policy leave open the important
operational question of how to determine whether current policies are consistent with the …

New Keynesian sticky-price models predict that monetary policy can affect real variables.
However, they also predict that inflation can be reduced without depressing output or …

Hyperinflation is usually interpreted as a result of the monetary financing of serious fiscal
imbalances. Here, a fiscalist alternative is explored, in which inflation explodes because of …

For several years, a heated debate has raged among economists and policymakers about
whether we face a serious risk of inflation. That debate has focused largely on the Federal …

The fiscal theory says that the price level is determined by the ratio of nominal debt to the
present value of real primary surpluses. I analyze long‐term debt and optimal policy in the …