Author(s)

Rongyu Wang^1,2

¹School of Economics, The University of Edinburgh, Edinburgh, United Kingdom.
²Institute of Information Research, Qilu University of Technology (Shandong Academy of Sciences), Jinan, China.

[1] is an important literature in the field of the fiscal theory of price level. However, I prove that the equations of (39) in [1] are wrong and provide the correct results. I also find that the mistake of equations of (39) affects the rest of [1], which is based on the establishment of equations of (39). I list all the results in [1] that cannot be established due to the mistake of equations of (39). Considering the importance of [1] in the field of fiscal theory of price level, all knowledge developed by far based on the results that cannot be established in [1] should be re-examined.

Staggered-Pricing Model, New Keynesian Model, Fiscal Theory of Price Level

Wang, R. (2024) A Nontrivial Math Error in “Sophisticated Monetary Policies”. Journal of Mathematical Finance, 14, 214-225. doi: 10.4236/jmf.2024.142012.