The Fiscal Theory of Price Level and its impact on the Way Fiscal Monetary Interplay: Is it Inevitable in Algeria?

Abstract

Our study highlights the importance of the fiscal theory of price level, showing the role of FTPL in the interaction and coordination between monetary-fiscal policies under different economic regimes (ricardian and non-ricardian). Depending on analytic methodology, the main results show that the economics regime is an important determinant of the theory of price level and the coordination way between policies. Besides, in Algeria, it is inevitable to choose FTPL according to its economic capabilities.

Keywords

• Fiscal theory
• price level;
• ricardian regime
• non ricardian regime
• Algeria
• monetary fiscal interplay