Some Pleasant Monetarist Arithmetic

17 Pages Posted: 4 Jul 2004 Last revised: 16 Jan 2022

See all articles by Michael R. Darby

Michael R. Darby

University of California, Los Angeles (UCLA) - Global Economics and Management (GEM) Area; National Bureau of Economic Research (NBER)

Date Written: March 1984

Abstract

Contrary to the conclusion of Sargent and Wallace, it is possible to exogenously and independently vary monetary and fiscal policy and retain steady-state equlibrium in economies like the United States. In particular,the central bank is not forced to monetize increased deficits either now or in the future. This conclusion is based on the fact that the real after-tax yield on government bonds is considerably less than the growth rate of real income except during brief disinflationary periods.

Suggested Citation

Darby, Michael R., Some Pleasant Monetarist Arithmetic (March 1984). NBER Working Paper No. w1295, Available at SSRN: https://ssrn.com/abstract=321338

Michael R. Darby (Contact Author)

University of California, Los Angeles (UCLA) - Global Economics and Management (GEM) Area ( email )

110 Westwood Plaza
Box 951481
Los Angeles, CA 90095-1481
United States
310-825-4180 (Phone)
310-454-2748 (Fax)

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
53
Abstract Views
932
Rank
681,958
PlumX Metrics