That said, whether or not a central bank can control bond prices depends not on its intention but on market judgment. It is for that reason too that I emphasize the importance of fiscal consolidation. 3  See Sims (1999), Christiano and Fitzgerald (2000a, b), Leeper (1991), Cochrane (2000), and Woodford (1996, 2001) for details regarding the fiscal theory of price level.
6  BIS central bankers’ speeches  Concluding remarks A.  Government’s commitment for fiscal consolidation  Now, let me sum up. In my speech today, I have repeatedly emphasized the importance of fiscal consolidation.