M06_Gordon8014701_12_Macro_C06
... • The solvency condition states that the government can meet its interest bill forever by issuing more bonds without increasing the debt-GDP ratio only if the economy’s growth rate (p + y) equals or exceeds its actual nominal interest rate (r). • What about the U.S. debt level in 2010? – D = $9,000B ...
... • The solvency condition states that the government can meet its interest bill forever by issuing more bonds without increasing the debt-GDP ratio only if the economy’s growth rate (p + y) equals or exceeds its actual nominal interest rate (r). • What about the U.S. debt level in 2010? – D = $9,000B ...
Using Fiscal Policy
... for specific future purpose – trust fund surpluses invested in bonds until programs need the funds – some economists do not think moving funds within government is debt – no burden to current economy because current budget does not pay for it NEXT ...
... for specific future purpose – trust fund surpluses invested in bonds until programs need the funds – some economists do not think moving funds within government is debt – no burden to current economy because current budget does not pay for it NEXT ...
Since 2002, the U.S. has seen the emergence of
... of capital, which fosters investment; second, the reduction in tax rates itself fosters investment. As a result, the current account deteriorates. Why the twins sometimes go their separate ways Although theory indicates that the budget deficit and the current account deficit should move together, Fi ...
... of capital, which fosters investment; second, the reduction in tax rates itself fosters investment. As a result, the current account deteriorates. Why the twins sometimes go their separate ways Although theory indicates that the budget deficit and the current account deficit should move together, Fi ...
Chapter 12: Government Debt and Budget
... aggregate demand leads along that path. In all likelihood its senior officials are uninterested in seeing the economy pushed away from that path by the fiscal policy decisions of legislators. Hence it is very likely that the central bank will act to neutralize any effect of ...
... aggregate demand leads along that path. In all likelihood its senior officials are uninterested in seeing the economy pushed away from that path by the fiscal policy decisions of legislators. Hence it is very likely that the central bank will act to neutralize any effect of ...
Statistical Analysis: Theoretical Background
... GDP growth rate are greatly influenced by the state of the government’s budgetary balance and by the level of prudence exercised in its fiscal management. A surplus in the budget tends to improve the country’s trade and current account balances in its balance of payment account; to increase the infl ...
... GDP growth rate are greatly influenced by the state of the government’s budgetary balance and by the level of prudence exercised in its fiscal management. A surplus in the budget tends to improve the country’s trade and current account balances in its balance of payment account; to increase the infl ...
Why Deficits Matter - Henry B. Tippie College of Business
... We end up with fewer factories, less business equipment, fewer computers, etc. As a result the nation can produce less. And wages are lower too because workers are less productive. ...
... We end up with fewer factories, less business equipment, fewer computers, etc. As a result the nation can produce less. And wages are lower too because workers are less productive. ...
Lecture32(Ch29)
... • Leave it? Cut taxes? Increase spending? • The social security problem – As baby boom generation retires, benefits will grow relative to payroll tax revenues – Will need to reduce benefits or increase taxes – Some suggest privatizing part of social security ...
... • Leave it? Cut taxes? Increase spending? • The social security problem – As baby boom generation retires, benefits will grow relative to payroll tax revenues – Will need to reduce benefits or increase taxes – Some suggest privatizing part of social security ...
NBER WORKING PAPER SERIES THE EURO AND THE STABILITY PACT Martin Feldstein
... interest rates or of the exchange rate, a country can stimulate aggregate demand only by fiscal policy. While a fiscal policy can in principle take the form of a revenue neutral change in fiscal incentives – e.g., an investment tax credit offset by a temporary rise in the corporate income tax rate – ...
... interest rates or of the exchange rate, a country can stimulate aggregate demand only by fiscal policy. While a fiscal policy can in principle take the form of a revenue neutral change in fiscal incentives – e.g., an investment tax credit offset by a temporary rise in the corporate income tax rate – ...
Chapter 14
... calls the “negative” category among highest-rated bonds • The negative rating had an immediate effect on the interest rate that the British government was required to offer to induce individuals and companies to continue buying its bonds • Indeed, the British government has had to pay almost $500,00 ...
... calls the “negative” category among highest-rated bonds • The negative rating had an immediate effect on the interest rate that the British government was required to offer to induce individuals and companies to continue buying its bonds • Indeed, the British government has had to pay almost $500,00 ...
Saving, Investment, and the Financial System
... 9. Which of the following sets of government policies is the most growth oriented? a. lower taxes on the returns to saving, provide investment tax credits, and lower the deficit. b. lower taxes on the returns to saving, provide investment tax credits, and increase the deficit. c. increase taxes on t ...
... 9. Which of the following sets of government policies is the most growth oriented? a. lower taxes on the returns to saving, provide investment tax credits, and lower the deficit. b. lower taxes on the returns to saving, provide investment tax credits, and increase the deficit. c. increase taxes on t ...
Practice Final
... C. Mortgage securities became illiquid D. Dot-com bubble burst E. Subprime lending Ch 15 40. The American national deficit is: A. Total amount the U.S. has borrowed over its history, minus all repayments that have occurred B. Interest costs on the national debt C. Spending minus Tax Revenue, on an a ...
... C. Mortgage securities became illiquid D. Dot-com bubble burst E. Subprime lending Ch 15 40. The American national deficit is: A. Total amount the U.S. has borrowed over its history, minus all repayments that have occurred B. Interest costs on the national debt C. Spending minus Tax Revenue, on an a ...
19 Big Events: The Economics of Depression, Hyperinflation, and
... national debt have become a significant component of government expenditure. Most of the federal government’s revenues come from taxes. The government’s revenues haven’t changed very much as a percentage of GDP over the last 30 years; its expenditures have soared. Social security taxes contribute mo ...
... national debt have become a significant component of government expenditure. Most of the federal government’s revenues come from taxes. The government’s revenues haven’t changed very much as a percentage of GDP over the last 30 years; its expenditures have soared. Social security taxes contribute mo ...
Do Deficits Matter? And, If So, How?
... tial amounts of revenue to service the national debt.” That deadweight loss — or, the investments foregone because of how the tax system is structured — can be exacerbated further by the tax code’s penalization of capital formation relative to consumption. Of greater consequence than today’s deficit ...
... tial amounts of revenue to service the national debt.” That deadweight loss — or, the investments foregone because of how the tax system is structured — can be exacerbated further by the tax code’s penalization of capital formation relative to consumption. Of greater consequence than today’s deficit ...
Ch 5 MCQs File
... Chapter 5 The Government Budget, Foreign Borrowing, and the Twin Deficits 1) The three ways of reducing a government budget deficit are to A) decrease government spending, reduce consumption, increase the tax rate. B) increase government spending, decrease real income, reduce the tax rate. C) decrea ...
... Chapter 5 The Government Budget, Foreign Borrowing, and the Twin Deficits 1) The three ways of reducing a government budget deficit are to A) decrease government spending, reduce consumption, increase the tax rate. B) increase government spending, decrease real income, reduce the tax rate. C) decrea ...
Press Release skira fiskalit-2013
... An examination of the expected path of the deficit and the debt to GDP ratio in coming years indicates that if the government reduces the increase in its expenditure to the ceiling set according to the expenditure rule, and maintains the tax rates set by law (including already approved changes for u ...
... An examination of the expected path of the deficit and the debt to GDP ratio in coming years indicates that if the government reduces the increase in its expenditure to the ceiling set according to the expenditure rule, and maintains the tax rates set by law (including already approved changes for u ...
When Y - The University of Chicago Booth School of Business
... Is there a cost? Yes - balanced budget amendments can make economic situations worse. Refer back to the example earlier in this lecture when consumer confidence fell. As Y fell, tax revenues fell. As tax revenues fell, deficits (cyclical) increased. If the government had to balance the budget, they ...
... Is there a cost? Yes - balanced budget amendments can make economic situations worse. Refer back to the example earlier in this lecture when consumer confidence fell. As Y fell, tax revenues fell. As tax revenues fell, deficits (cyclical) increased. If the government had to balance the budget, they ...
Fiscal Data (1st notification)
... The Hellenic Statistical Authority (ELSTAT) announces the fiscal data for the years 2013-2016 compiled in the context of the first Excessive Deficit Procedure (EDP) notification of 2017, which was transmitted to Eurostat in fulfilment of Greece’s obligations according to Council Regulation (EC) 479/ ...
... The Hellenic Statistical Authority (ELSTAT) announces the fiscal data for the years 2013-2016 compiled in the context of the first Excessive Deficit Procedure (EDP) notification of 2017, which was transmitted to Eurostat in fulfilment of Greece’s obligations according to Council Regulation (EC) 479/ ...
The Macroeconomics of Public Expenditure
... – Revenues – tax, fees, foreign transfers (and grants) – Public expenditures (PE) – recurrent (public consumption) and capital (public investment) • Revenues – public consumption – public investment = government budget deficit before grants ...
... – Revenues – tax, fees, foreign transfers (and grants) – Public expenditures (PE) – recurrent (public consumption) and capital (public investment) • Revenues – public consumption – public investment = government budget deficit before grants ...
Martin Feldstein The Euro and the Stability Pact
... rates or of the exchange rate, a country can stimulate aggregate demand only by fiscal policy. While a fiscal policy can in principle take the form of a revenue neutral change in fiscal incentives – e.g., an investment tax credit offset by a temporary rise in the corporate income tax rate – the usua ...
... rates or of the exchange rate, a country can stimulate aggregate demand only by fiscal policy. While a fiscal policy can in principle take the form of a revenue neutral change in fiscal incentives – e.g., an investment tax credit offset by a temporary rise in the corporate income tax rate – the usua ...
APPENDIX: TABLE A: SFY 2012-13 Ohio budget by major fund
... There are two common measures of the national debt: • Net debt, also called debt held by the public, “National debt” or “Public Debt,” measures the government’s borrowing from the private sector (including banks and investors) and foreign governments. • Gross debt is net debt plus the debts the Trea ...
... There are two common measures of the national debt: • Net debt, also called debt held by the public, “National debt” or “Public Debt,” measures the government’s borrowing from the private sector (including banks and investors) and foreign governments. • Gross debt is net debt plus the debts the Trea ...
Chapter 1
... 2. Most current revenues and expenditures are a result of decisions made in prior years so most of the budget is “uncontrollable”. Uncontrollables account for approximately 80% of the federal budget. Leaves 20% for discretionary fiscal spending. 3. Automatic transfers. Most uncontrollable line ...
... 2. Most current revenues and expenditures are a result of decisions made in prior years so most of the budget is “uncontrollable”. Uncontrollables account for approximately 80% of the federal budget. Leaves 20% for discretionary fiscal spending. 3. Automatic transfers. Most uncontrollable line ...
Delivering the Deficit Reduction: Rising Phoenix or a Dead
... heath service had been used to 20% ‘efficiency’ savings Little evidence from Gershon etc about realism of such efficiency efforts Also, major reform of administration ...
... heath service had been used to 20% ‘efficiency’ savings Little evidence from Gershon etc about realism of such efficiency efforts Also, major reform of administration ...
Chapter 14
... Evaluating the Rising Public Debt (cont'd) Paying off the public debt in the future If the debt becomes larger, each person’s share would ...
... Evaluating the Rising Public Debt (cont'd) Paying off the public debt in the future If the debt becomes larger, each person’s share would ...
Presentation
... The secret of the success of the Gold Standard was that it rested upon colonialism. The member countries belonged to two distinct groups: the colonies and the others. Britain, the leading country, ran a current account deficit vis-à-vis continental Europe and the United States. It not only financed ...
... The secret of the success of the Gold Standard was that it rested upon colonialism. The member countries belonged to two distinct groups: the colonies and the others. Britain, the leading country, ran a current account deficit vis-à-vis continental Europe and the United States. It not only financed ...