  The paper tests the validity of the critique of the fiscal theory of the
price level. A stochastic general equilibrium model with continuous time is
constructed. An active fiscal policy and a passive monetary policy have been
set. Monetary policy manages the interest rate through the Taylor rule. The
stochastic default factor in the special form is introduced. A complete
definite system of equations is obtained for the detection of equilibrium. It
is asserted that the peculiarities of the approach to modeling are of critical
importance for verifying the presence of certain hypotheses and formulating
conclusions. The results of this work are in support of the fiscal theory of
the price level.
