TY  - JOUR
AU  - Darby,Michael R.
TI  - Some Pleasant Monetarist Arithmetic
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 1295
PY  - 1984
Y2  - October 1984
UR  - http://www.nber.org/papers/w1295
L1  - http://www.nber.org/papers/w1295.pdf
N1  - Author contact info:
Michael R. Darby
John E. Anderson Graduate School of Management
University of California, Los Angeles
110 Westwood Plaza, Box 951481
Los Angeles, CA 90095-1481
Tel: 310/825-4180
Fax: 310/454-2748
E-Mail: michael.r.darby@anderson.ucla.edu
AB  - Contrary to the conclusion of Sargent and Wallace, it is possible to exogenously and independently vary monetary and fiscal policy and retain steady-state equlibrium in economies like the United States. In particular,the central bank is not forced to monetize increased deficits either now or in the future. This conclusion is based on the fact that the real after-tax yield on government bonds is considerably less than the growth rate of real income except during brief disinflationary periods.
ER  -