Monetary policy has inevitable fiscal effects – Willem Buiter
Former Bank of England official rails against fiscal theory of price level in speech to RBI
Monetary policy cannot avoid having a fiscal impact, Willem Buiter told an audience at an event hosted by the Reserve Bank of India on April 11.
The Citigroup chief economist and former Bank of England Monetary Policy Committee member used his speech to attempt to “rebury” the fiscal theory of the price level (FTPL), an unorthodox economic theory that has nevertheless regained traction in recent years.
The FTPL holds that policy rules can be described such that the price level is determined by
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