This paper illustrates the propositions of the fiscal theory of the price level (FTPL) using a simple dynamic framework. The FTPL argues that in a Ricardian policy regime, the price level is determined by the monetary variables. In a non-Ricardian policy regime, the government's solvency constraint provides an additional restriction that helps pin down the price level. This paper begins with the main propositions of the FTPL. These include the price level determinacy under an interest rate rule, the observational equivalence between the Ricardian and the non-Ricardian policy regime, the ineffectiveness of monetary policy on price control under specific fiscal rule, and the tight money paradox by which an aggressive interest rate rule can lead to explosive inflation. We then discuss the critiques of the theory, such as the fragility of the theory and the over-determination of price level. The last part examines whether Taiwan is in a Ricardian or a non-Ricardian policy regime.