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- W1574687385 abstract "Cochrane (2005) employs a well specified Walrasian general equilibrium model to defend the fiscal theory of the price level against two forms of criticism; that: (1) it implies the violation of Walras's Law and, (2) the completely cashless, frictionless version of the model cannot determine the price level. Of the two criticisms only the second is substantive. This paper explains why no version of Cochrane's model offers a theory of the price level. The model can determine the consumption good value of an asset and a numeraire denominated price level. A numeraire denominated price level is of no theoretical significance." @default.
- W1574687385 created "2016-06-24" @default.
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- W1574687385 date "2006-01-01" @default.
- W1574687385 modified "2023-09-27" @default.
- W1574687385 title "Cochrane's Defence of the Fiscal Theory of the Price Level: Clarification and Critique" @default.
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