TAILIEUCHUNG - Lecture Macroeconomics: Lecture 23 - Prof. Dr.Qaisar Abbas

Lecture 23 - Government debt. After studying this chapter you will be able to understand: The size of the . government’s debt, and how it compares to that of other countries; problems measuring the budget deficit; the traditional and Ricardian views of the government debt; other perspectives on the debt. | Review of the previous lecture 1. Modigliani’s Life-Cycle Hypothesis Income varies systematically over a lifetime. Consumers use saving & borrowing to smooth consumption. Consumption depends on income & wealth. 2. Friedman’s Permanent-Income Hypothesis Consumption depends mainly on permanent income. Consumers use saving & borrowing to smooth consumption in the face of transitory fluctuations in income. 3. Hall’s Random-Walk Hypothesis Combines PIH with rational expectations. Main result: changes in consumption are unpredictable, occur only in response to unanticipated changes in expected permanent income. 0 Review of the previous lecture 4. Laibson and the pull of instant gratification Uses psychology to understand consumer behavior. The desire for instant gratification causes people to save less than they rationally know they should. 1 Lecture 23 Government Debt Instructor: Prof. Dr. Qaisar Abbas 2 This chapter sets up the IS-LM model, which chapter 11 then uses extensively to .

• Kinh tế học
• Lecture Macroeconomics
• Principles of microeconomics
• Economic models
• Science of macroeconomics
• Tools of microeconomics
• Microeconomic transactions
• Government debt
• Bài giảng Kinh tế vĩ mô
• Kinh tế vĩ mô
• Data of macroeconomics
• Unemployment rate
• Inflation rate
• Natural rate of unemployment
• Consumer price index
• National income
• Agriculture sector
• Agricultural policies
• Economic fluctuations
• Macroeconomic policy
• Business cycle theory