Monetary Economics

Nominal Government Securities

In progress...!

Actually, progress has been a bit slow on this. Here is the paper as it was in 2003. I wrote it because I basically agreed with Marco Bassetto (Econometrica, 2002) about the fiscal theory of the price level, but thought one could use competitive markets instead of Shubik market games. As in Bassetto's work, the specification of government policy off the equilibrium path is essential. You may also want to check out this paper if you think the price of a share is equal to the present discounted value of dividends per share.