Central Banks as Fiscal Players: The Drivers of Fiscal and Monetary Policy Space
ISBN: 9781108904292
Platform/Publisher: Cambridge Core / Cambridge University Press
Digital rights: Users: Unlimited; Printing: Unlimited; Download: Unlimited

It is well known that the balance sheets of most major central banks significantly expanded in the aftermath of the financial crisis of 2007-2011, but the consequences of this expansion are not well understood. This book develops a unified framework to explain how and why central bank balance sheets have expanded and what this shift means for fiscal and monetary policy. Buiter addresses a number of key issues in monetary economics and public finance, including how helicopter money works, when modern monetary theory makes sense, why the Eurosystem has a potentially fatal design flaw, why the fiscal theory of the price level is a fallacy and how to escape from the zero lower bound.


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