The fall in the US federal debt-held-by-the-public/GDP ratio from a postwar peak of 106% in fiscal year 1946 to a trough of 23% in 1974 is widely cited (Elmendorf-Mankiw, Krugman) as evidence that an …
This 1990 *Review of Economic Studies* paper (circulated as NBER Working Paper 2476, December 1987) asks why nominal shocks like changes in the money supply appear to have large real effects, given …