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.
- ISBN13 9781108822763
- Publish Date 12 November 2020 (first published 2 November 2020)
- Publish Status Active
- Publish Country GB
- Imprint Cambridge University Press
- Format Paperback (US Trade)
- Pages 200
- Language English