NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Controlling the Price Level

Robert E. Hall

NBER Working Paper No. 6914
Issued in January 1999
NBER Program(s):   EFG

Governments determine the size of the unit of value just as they determine the length of the length and weight of physical units of measure. What are the different ways that a government can control the size of the unit of value, that is, control the price level? In general, the government designates a resource gold, paper currency, another country's currency and defines its unit of value as a particular amount of that resource. An interesting variant proposed by Irving Fisher in 1913 and implemented more recently in Chile is to alter the resource content of the unit to stabilize the price level. Another idea is to alter the interest rate paid on reserves in a way that stabilizes the price level.

download in pdf format
   (96 K)

email paper

This paper is available as PDF (96 K) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w6914

Published:

  • Contributions to Macroeconomics, (The B.E. Journal of Macroeconomics), Vol. 2: Iss. 1, Article 5 (2002) ,
  • American Journal of Economics and Sociology, Vol. 64, no. 1 (January 2005): 93-112

Users who downloaded this paper also downloaded these:
Woodford w7853 Monetary Policy in a World Without Money
Grossman and Lai w12423 Parallel Imports and Price Controls
Chari and Kehoe w6891 Optimal Fiscal and Monetary Policy
 
Publications
Activities
Meetings
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us