Some Pleasant Monetarist Arithmetic / Michael R. Darby.

By:

Darby, Michael R

Contributor(s):

National Bureau of Economic Research

Material type: Text

TextSeries: Working Paper Series (National Bureau of Economic Research) ; no. w1295.Publication details: Cambridge, Mass. National Bureau of Economic Research 1984.Description: 1 online resource: illustrations (black and white)Subject(s):

E - Macroeconomics and Monetary Economics

Online resources:

Available additional physical forms:

Hardcopy version available to institutional subscribers

Abstract: Contrary to the conclusion of Sargent and Wallace, it is possible to exogenously and independently vary monetary and fiscal policy and retain steady-state equlibrium in economies like the United States. In particular,the central bank is not forced to monetize increased deficits either now or in the future. This conclusion is based on the fact that the real after-tax yield on government bonds is considerably less than the growth rate of real income except during brief disinflationary periods.

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Item type	Home library	Collection	Call number	Status	Date due	Barcode	Item holds
Working Paper	Biblioteca Digital	Colección NBER	nber w1295 (Browse shelf(Opens below))	Not For Loan

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Previous	nber w12947 International Evidence on Fiscal Solvency: Is Fiscal Policy "Responsible"? /	nber w12948 Beliefs, Doubts and Learning: Valuing Economic Risk /	nber w12949 Trade and Trade Policy with Differentiated Products: A Chamberlinian-Ricardian Model /	nber w1295 Some Pleasant Monetarist Arithmetic /	nber w12950 Firm Heterogeneity and Firm Behavior with Conditional Policies /	nber w12951 Worker Sorting, Compensating Differentials and Health Insurance: Evidence from Displaced Workers /	nber w12952 A Lobbying Approach to Evaluating the Sarbanes-Oxley Act of 2002 /	Next

March 1984.

Contrary to the conclusion of Sargent and Wallace, it is possible to exogenously and independently vary monetary and fiscal policy and retain steady-state equlibrium in economies like the United States. In particular,the central bank is not forced to monetize increased deficits either now or in the future. This conclusion is based on the fact that the real after-tax yield on government bonds is considerably less than the growth rate of real income except during brief disinflationary periods.