We develop a new class of general-equilibrium models with partially unfunded debt to
propose a fiscal theory of persistent inflation. In response to business cycle shocks, the …

The Fiscal Theory of the Price Level Page 1 Page 2 The Fiscal Theory of the Price Level john h.
cochrane princeton university press princeton and oxford Page 3 Copyright c 2023 by …

This review describes interactions between monetary and fiscal policies that affect
equilibrium price levels and interest rates by critically surveying theories about (a) optimal …

Low and stable inflation requires an appropriate fiscal framework aimed at stabilizing
government debt. Historically, trend inflation is critically influenced by actual or perceived …

This paper proposes a tractable framework to analyze fiscal space and the dynamics of
government debt, with a possibly binding zero lower bound (ZLB) constraint. Without the …

This article discusses recent research on the macroeconomic effects of fiscal policy—the
theme of the 2018 edition of the Melbourne Institute Macroeconomic Policy Meeting. We …

The COVID pandemic found policymakers facing constraints on their ability to react to an
exceptionally large negative shock. The current low interest rate environment limits the tools …

Monetary and fiscal-led equilibria in New Keynesian models (Leeper, 1991) are extreme
regimes. A realistic model of monetary and fiscal policy interaction should allow for …

We address the optimal marginal source of financing shocks that raise fiscal needs in the
presence of a maturity structure for nominal government debt, distortionary taxes, and sticky …

Governments around the world embarked on a large fiscal expansion in response to the
GFC and COVID-19 crises, increasing government debt to levels not seen in 75 years. We …