E-ISSN 2791-9439 | ISSN 1300-1868
 

Original Article 


THE PROBLEM OF PRICE INDETERMINACY UNDER THE MONETARY AND FISCAL REGIMES AND CENTRAL BANK INDEPENDENCE

Erdinç TELATAR.

Abstract
Monetary policy is related to fiscal policy by an intertemporal budget constraint, which says that the present value of future surpluses (including central bank transfers) has to be able to pay off the current govemment debt. This present value budget constraint is at the hearth of recent research on the theory of price determination. Two types of policy regime are defined in the new theory. First is the fiscal dominant regime in w hi ch the price level is determined by the dietates of fiscal solvency. Underthis regime, the central bank could not be responsible for maintaining price stability because it does not have the "functional independence" w hi ch is necessary to control the price level independently of the dietates offiscal solvency. The second regime is called monetary dominant regime in which fiscal policy guarantees that price level is determined independently of govemment's present value budget constraint. U nder this regime, the central bank could be responsible for price stability because it has the "functional independence". So, it is shownin this paper that it is very important to determine whether the regime, which is shaped by the interaction between monetary en d fiscal policy, is monetary dominant or fiscal dominant in order to analyze the monetary policy.

Key words: na



PARA VE MALİYE POLİTİKASI DOMİNANT REJİMLERDE FİYAT BELİRLENMEZLİK PROBLEMİ VE MERKEZ BANKASI BAĞIMSIZLIĞI

Ozet
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Anahtar Kelimeler: yok


 
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WOODFORD, M., (1994), "Monetary policy and price level determinacy in a cash-inadvance economy", Economic Theory, 4: 345-380. [DOI via Crossref]   
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How to Cite this Article
Pubmed Style

Erdinc TELATAR. [THE PROBLEM OF PRICE INDETERMINACY UNDER THE MONETARY AND FISCAL REGIMES AND CENTRAL BANK INDEPENDENCE]. Ekonomik Yaklasim. 1999; 10(35): 5-20. Turkish. doi:10.5455/ey.10317


Web Style

Erdinc TELATAR. [THE PROBLEM OF PRICE INDETERMINACY UNDER THE MONETARY AND FISCAL REGIMES AND CENTRAL BANK INDEPENDENCE]. https://www.ekonomikyaklasim.org/?mno=155619 [Access: April 10, 2023]. Turkish. doi:10.5455/ey.10317


AMA (American Medical Association) Style

Erdinc TELATAR. [THE PROBLEM OF PRICE INDETERMINACY UNDER THE MONETARY AND FISCAL REGIMES AND CENTRAL BANK INDEPENDENCE]. Ekonomik Yaklasim. 1999; 10(35): 5-20. Turkish. doi:10.5455/ey.10317



Vancouver/ICMJE Style

Erdinc TELATAR. [THE PROBLEM OF PRICE INDETERMINACY UNDER THE MONETARY AND FISCAL REGIMES AND CENTRAL BANK INDEPENDENCE]. Ekonomik Yaklasim. (1999), [cited April 10, 2023]; 10(35): 5-20. Turkish. doi:10.5455/ey.10317



Harvard Style

Erdinc TELATAR (1999) [THE PROBLEM OF PRICE INDETERMINACY UNDER THE MONETARY AND FISCAL REGIMES AND CENTRAL BANK INDEPENDENCE]. Ekonomik Yaklasim, 10 (35), 5-20. Turkish. doi:10.5455/ey.10317



Turabian Style

Erdinc TELATAR. 1999. [THE PROBLEM OF PRICE INDETERMINACY UNDER THE MONETARY AND FISCAL REGIMES AND CENTRAL BANK INDEPENDENCE]. Ekonomik Yaklasim, 10 (35), 5-20. Turkish. doi:10.5455/ey.10317



Chicago Style

Erdinc TELATAR. "[THE PROBLEM OF PRICE INDETERMINACY UNDER THE MONETARY AND FISCAL REGIMES AND CENTRAL BANK INDEPENDENCE]." Ekonomik Yaklasim 10 (1999), 5-20. Turkish. doi:10.5455/ey.10317



MLA (The Modern Language Association) Style

Erdinc TELATAR. "[THE PROBLEM OF PRICE INDETERMINACY UNDER THE MONETARY AND FISCAL REGIMES AND CENTRAL BANK INDEPENDENCE]." Ekonomik Yaklasim 10.35 (1999), 5-20. Print.Turkish. doi:10.5455/ey.10317



APA (American Psychological Association) Style

Erdinc TELATAR (1999) [THE PROBLEM OF PRICE INDETERMINACY UNDER THE MONETARY AND FISCAL REGIMES AND CENTRAL BANK INDEPENDENCE]. Ekonomik Yaklasim, 10 (35), 5-20. Turkish. doi:10.5455/ey.10317





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