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

Erdinç TELATAR

doi:10.5455/ey.10317

2023, Vol: 34, Issue: 126

34 / 126Current Issue Online First Archive Aims and Scope Abstracting & Indexing Most Accessed Articles Most Downloaded Articles Most Cited Articles

« Previous Article

Original Article

Ekonomik Yaklasim. 1999; 10(35): 5-20

doi: 10.5455/ey.10317

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
yok

Anahtar Kelimeler: yok

	ARTICLE TOOLS
	Abstract
	PDF Fulltext
	How to cite this article
	Citation Tools
	Related Records
	Articles by Erdinç TELATAR
	on Google
	on Google Scholar

REFERENCES

Barro, R. J., (1974), "Are government bonds net wealth?", Journal ofPolitical Economy, 59 (2): 93-116.

Barro, R. J., (i989), "Interest rate targeting", Journal of Monetary Economics, 23: 3-30. [DOI via Crossref]

Canzoneri, M. B. ve B. T. Diba, (1996), "Fiscal Constraints on Central Bank Independence and Price Stability", CPER D iscussion Paper No. i463.

Canzoneri, M. B., R. E. Cumby ve B. T. Diba, (1998), "Is the price level determined by the needs of fiscal solvency?, CEPR Discussion Paper No. i 772.

FRY, M. J ., (1998), "Assessing central bank independence in developing countries: Do actions speak louder than words?", Oxford Economic Papers, 50: 512-529. [DOI via Crossref]

Hoover, K. D., (1988), The new classical macroeconomics. A sceptical inquiry. Cambridge, MA: Basil Blackwell, Ine.

Leeper, E. M., (1991), "Equilibria under "active" and "passive" monetary and fiscal policies", Journal of Monetary Economics, 27: 129-i47.

Sargent, T. J. ve N. Wallace, (1981), "Some unpleasant monetarist arithmetic", Federal Reserve Bank of Minneapolis Quarterly Review, Fall: i -17.

Sims, C. A., (1994), "A simple model for study of the determination of the price level and the in teraeti on of monetary and fiscal policy", Economic Theory, (4): 381-399. [DOI via Crossref]

SIMS, C. A., (1998), "Econometric implications of the government budget constraint", Journal ofEconometrics, 83: 9-19. [DOI via Crossref]

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

Woodford, M., (1995), "Price level determinacy without control of a monetary aggragate", NBER Working Paper No. 5204.

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

Contact Information

How to cite this article