本文以Liviatan（1986）的最適控制模型為理論架構，同時採用降低貨幣融通相對於債券融通的比例作為緊縮貨幣的衡量指標，來討論Sargentand Wallace（1981）的命題。在這篇論文中，我們除了指出Liviatan的分析有違由Sargnt-Wallace命題的原創精神外，也發現透過上限債券數量的設定，以體制崩潰的手法重釋Sargent-Wallace命題，就可避免Liviatan的缺失。
Based on Liviatan's (1986) intertemporal optimizing framework, this paper defines a reduction of the ratio of money finance to bond finance of the government deficit as the measurement of tightening monetary policy ,and then uses this new measurement to reexamine whether the Sargentand Wallace (1981) assertion is valid or not. We have pointed out that the Liviatan analysis is not suitable to explain the original spirit of Sargentand Wallace's monetarist arithmetic. In addition we have found that the viewpoint of regime collapse through specifying a binding threshold level of bonds can escape from the deficiencies in Liviatan.
