《宏观经济学》课程教学资源（英文版）Government debt

Intermediate Macroeconomics Review for fina

Intermediate Macroeconomics Review for Final

中b2 Policy debate Positive or passive? Positive: fight shocks by fiscal/monetary policy Passive 1) Lags in implementation effects of policies 2) Economic forecasting is difficult: gnorance, expectations, the Lucas Critique'' Conclusion? Historic data?t

Policy Debate 1. Positive or passive? Positive: fight shocks by fiscal/monetary policy Passive: 1) Lags in implementation & effects of policies 2) Economic forecasting is difficult: 3) Ignorance, expectations, & the “Lucas Critique” Conclusion? Historic data?

丰 or esTers Policy debate 2. Be conducted by rule or by discretion? 1) Why not by discretion? a) Distrust of policy makers the political process b) Time inconsistency of discretionary policy 2) Possible rules for monetary fiscal policies

Policy Debate 2. Be conducted by rule or by discretion? 1) Why not by discretion? a) Distrust of policy makers & the political process b) Time inconsistency of discretionary policy 2) Possible rules for monetary & fiscal policies

中b2 Government debt 1. Is budget deficit correctly measured? 1)Inflation 2)CapitalS sets 3)Uncounted liabilities 4)Business cycle

Government Debt 1. Is budget deficit correctly measured? 1) Inflation 2) Capital Assets 3) Uncounted liabilities 4) Business cycle

丰 or esTers Government debt 2. Traditional view of govern. Debt- LR. classical model SR.IS-LM model

Government Debt 2. Traditional view of govern. Debt LR……classical model SR……IS-LM model

丰 or esTers Government debt 3. Ricardian equivalence Basic logic 2) Critiques from defenders of traditional view a) Myopia b) Borrowing constraints c)Future generations

Government Debt 3. Ricardian equivalence 1) Basic logic 2) Critiques from defenders of traditional view a) Myopia b) Borrowing constraints c) Future generations

丰 or esTers Government debt 4.Other possible effects of govern. Debt a) Effects on monetary policy b) Debt and political process c) International effects

Government Debt 4. Other possible effects of govern. Debt a) Effects on monetary policy b) Debt and political process c) International effects

丰 or esTers The open economy I The international flows of capital goods 1)National Identity 2) The capital current account 3) Net Foreign Investment (NFD

The Open Economy 1. The international flows of capital & goods 1) National Identity 2) The capital & current account 3) Net Foreign Investment (NFI)

中b2 The Open Economy 2 Small open economy r=r 1) Model 2) Intluence of home fiscal policies 3) Influence of foreign fiscal policies (large)

The Open Economy 2. Small open economy r = r* 1) Model 2) Influence of home fiscal policies 3) Influence of foreign fiscal policies (large)

丰 or esTers The Open Economy 3: Exchange rates n Measure(real v.S. nominal 2) The real ex-rate and nX 3) Determinants of the real ex-rate 4) Effects of policies on real ex-rate(4) 5) Determinants of nominal ex-rate

The Open Economy 3. Exchange rates 1) Measure (real v.s. nominal) 2) The real ex-rate and NX 3) Determinants of the real ex-rate 4) Effects of policies on real ex-rate (4) 5) Determinants of nominal ex-rate