Series: IMF Working Papers
Author(s): Goohoon Kwon , Lavern McFarlane , and Wayne Robinson
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 01 May 2006
Keywords: the fiscal theory of the price level, dynamic panel, GMM, price level, monetary policy, money growth, Econometric Modeling: Other, Fiscal Theory Of The Price Level,
This paper provides comprehensive empirical evidence that supports the predictions of Sargent and Wallace's (1981) "unpleasant monetarist arithmetic" that an increase in public debt is typically inflationary in cou...