Sims argues that fiat government debt is best understood as analogous to privately issued equity rather than to privately issued debt, since it promises only future paper rather than a commodity the …
PublishedClassicJournal of Money, Credit and BankingPublished May 2001
Applying the fiscal theory of the price level's corporate-finance analogy -- fiat (own-currency) government debt behaves like equity, while dollar-denominated or indexed debt behaves like conventional …
Against the standard narrative that only monetary policy errors could have caused or prevented the 1970s US inflation, Sims documents dramatic swings in US fiscal stance over the period and shows, in …
Outlining the fiscal theory of the price level and its implications for monetary policy under inflationary and deflationary stress, Sims argues that the Maastricht Treaty's elaborate monetary …
PublishedClassicBrookings Papers on Economic ActivityPublished Sep 1996
This 1996 Brookings Papers on Economic Activity paper by Eric Leeper, Christopher Sims, and Tao Zha asks what monetary policy actually does, and argues that the answer the identified-VAR literature …