01839cas a2200253 a 4500 AALejournalIMF015962 230101c9999 xx r poo 0 0eng d 5.00 USD 9781513516196 1018-5941 BD-DhAAL BD-DhAAL Farmer, Roger. A Requiem for the Fiscal Theory of the Price Level / Roger Farmer, Pawel Zabczyk. Washington, D.C. : International Monetary Fund, 2019. 1 online resource (34 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students The Fiscal Theory of the Price Level (FTPL) is the claim that, in a popular class of theoretical models, the price level is sometimes determined by fiscal policy rather than monetary policy. The models where this claim has been established assume that all decisions are made by an infinitely-lived representative agent. We present an alternative, arguably more realistic model, populated by sixty-two generations of people. We calibrate our model to an income profile from U.S. data and we show that the FTPL breaks down. In our model, the price level and the real interest rate are indeterminate, even when monetary and fiscal policy are both active. Our findings challenge established views about what constitutes a good combination of fiscal and monetary policies. Mode of access: Internet Zabczyk, Pawel. IMF Working Papers; Working Paper ; No. 2019/219 Full text available on IMF http://elibrary.imf.org/view/journals/001/2019/219/001.2019.issue-219-en.xml IMF e-Library