A Central Bank theory of price level determination
By: Benigno, Pierpalolo
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Material type: 
BookPublisher: American Economic Journal Macroeconomic Description: 12(3), Jul, 2020: p.258-283.
In:
American Economic Journal MacroeconomicSummary: This paper develops a theory in which the central bank can control the price level without fiscal backing. It is shown that the remittances policy and the balance sheet of the central bank are important elements to specify. A central bank that is appropriately capitalized can succeed in controlling prices by setting the interest rate on reserves, holding short-term assets, and rebating its income to the treasury from which it has to maintain financial independence. – Reproduced
| Item type | Current location | Call number | Vol info | Status | Date due | Barcode |
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Articles
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Indian Institute of Public Administration | 12(3), Jul, 2020: p.258-283 | Available | AR124562 |
This paper develops a theory in which the central bank can control the price level without fiscal backing. It is shown that the remittances policy and the balance sheet of the central bank are important elements to specify. A central bank that is appropriately capitalized can succeed in controlling prices by setting the interest rate on reserves, holding short-term assets, and rebating its income to the treasury from which it has to maintain financial independence. – Reproduced
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