A small corner of intertemporal public finance - new developments in monetary economics
Subtitle: 2 ghosts, 2 eccentricities, a fallacy, a mirage and a mythos
By: Willem Buiter.
Contributors: National Bureau of Economic Research.
Series: NBER working paper series ;; working paper 10524; Working paper series (National Bureau of Economic Research : Online) ;; working paper no. 10524.
Publisher: National Bureau of Economic Research
Published: 2004
Place of publication: Cambridge, MA
Language: eng
Format: Electronic resource
Subjects: Monetary policy.; Liquidity (Economics); Interest.
Description: "Monetary theory and policy are part of intertemporal public finance.  The lecture reviews some interesting recent developments.  The two ghosts are the venerable liquidity trap and the Pigou effect or real balance effect.  The eccentricities are negative nominal interest rates and the helicopter drop of base money - two unconventional policies for stimulating consumer demand even when nominal interest rates, short and long, present and future, are at their zero lower bounds.  The fallacy is the so-called Fiscal Theory of the Price Level, a logically in-consistent theory of the link between the government budget and the general price level.  The mirage is the prediction that financial deregulation and technical change in the payments and settlements technology (e-money etc.), will cause monetary policy to lose its capacity to influence even nominal economic variables.  Mythos refers to the independent central bank"--National Bureau of Economic Research web site.
Notes: Also available in print.
Includes bibliographical references.
Title from PDF file as viewed on 1/12/2005.
System requirements: Adobe Acrobat Reader.
Mode of access: World Wide Web.