Fiscal theory, and fiscal and monetary policy in the financial crisis
نویسنده
چکیده
The fiscal theory offers an attractive perspective. First, with interest rates near zero, money and government bonds are nearly perfect substitutes, especially for the banks and financial institutions at the center of economic events. Conventional monetary policy analysis aimed at the split of government debt holdings between “monetary” and “debt” assets seems rather irrelevant; the big events seem to be the huge demand for both kinds of government debt, and the large interest rate spreads that have opened up between government and non-government debt.
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تاریخ انتشار 2009