Money, Debt and Prices in the UK 1705-1996
38 Pages Posted: 9 May 2005
Abstract
This paper constructs a consistent series for the market value of UK Government debt over almost 300 years. We analyse how monetary and fiscal policy affect the path of the price level in the UK. Specifically, the paper examines the interactions between debts, deficits, the monetary base and the price level. Overall, the price level has been closely related to the evolution of the base money supply. Across different sample periods, there is little econometric evidence that fiscal policy has affected the course of the price level (or of the exchange rate under the Gold Standard). Government debt has not significantly affected the base money stock either.
Keywords: Fiscal policy, debt, monetary policy, price level determination
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
Price Level Determinacy Without Control of a Monetary Aggregate
-
Money and Interest in a Cash-in-Advance Economy
By Robert E. Lucas and Nancy L. Stokey
-
Monetary Policy and Multiple Equilibria
By Jess Benhabib, Stephanie Schmitt-grohé, ...
-
Is the Price Level Determined by the Needs of Fiscal Solvency?
By Matthew B. Canzoneri, Robert E. Cumby, ...