Central Banks as Fiscal Players The Drivers of Fiscal and Monetary Policy Space

Central Banks as Fiscal PlayersThe Drivers of Fiscal and Monetary Policy Space\nAuthor(s): Willem Buiter\nFormat: Hardback\nPublisher: Cambridge University Press, United Kingdom\nImprint: Cambridge University Press\nISBN-13: 9781108842822, 978-1108842822\nSynopsis\nIt is well known that the balance sheets of most major central banks significantly expanded in the aftermath of the financial crisis of [tel], 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.