Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
966106 | Journal of Macroeconomics | 2006 | 23 Pages |
Abstract
This paper proposes two extensions to the empirics of the FTPL. First, we apply the methodology initiated by Canzoneri et al. [Canzoneri, M.B., Cumby, R.E., Diba, B.T., 2001. Is the price level determined by the needs of fiscal solvency? American Economic Review 91, 1221-1238] to European data. Second, we use structural balance data, in order to overcome Cochrane's critique. Our conclusion is that for neither country the data support a FTPL interpretation.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Jérôme Creel, Hervé Le Bihan,