Abstract
Japanese version (original): https://ssrn.com/abstract=3429565 Fiscal Theory of the Price Level (FTPL) derives the budget constraint formula of the integrated government which integrates balance sheets of the government and the central bank, and it is a theory that price level fluctuates so that real government debt satisfies budget constraint. This model does not specify the cause of price level fluctuations. Then, this paper proposes a model which clarifies the relation between the mechanism of the fluctuation of the price level and the finance by constructing the mathematical model of tax money theory and endogenous money supply theory which are the basis of Modern Monetary Theory (MMT), and constructing the macro-economic model.
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