Understanding Policy in the Great Recession: Some Unpleasant Fiscal Arithmetic / John H. Cochrane.

Format:

Book

Author/Creator:

Cochrane, John H.

Contributor:

National Bureau of Economic Research.

Series:

Working Paper Series (National Bureau of Economic Research) no. w16087.

NBER working paper series no. w16087

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Other Title:

Understanding Policy in the Great Recession

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2010.

Summary:

I use the valuation equation of government debt to understand fiscal and monetary policy in and following the great recession of 2008-2009, to think about fiscal pressures on US inflation, and what sequence of events might surround such an inflation. I emphasize that a fiscal inflation can come well before large deficits or monetization are realized, and is likely to come with stagnation rather than a boom.

Notes:

Print version record

June 2010.