TAILIEUCHUNG - Lecture Macroeconomics (9/e): Chapter 16 - David C. Colander

Chapter 16 - The fiscal policy dilemma. After reading this chapter, you should be able to: Summarize the Classical view of sound finance, summarize the Keynesian view of functional finance, list six assumptions of the AS/AD model that lead to potential problems with the use of fiscal policy. | An economist’s lag may be a politician’s catastrophe. ―George Schultz The Fiscal Policy Dilemma Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Chapter Goals Summarize the Classical view of sound finance Summarize the Keynesian view of functional finance List six assumptions of the AS/AD model that lead to potential problems with the use of fiscal policy Explain how automatic stabilizers work 2 The Fiscal Policy Dilemma The fiscal policy dilemma is what to do in periods of structural stagnation when both deficits and a balanced budget are called for When an economy falls into a structural stagnation, the effectiveness of expansionary demand-side policy is limited A government that cannot easily finance its debt will either go bankrupt or have to resort to inflationary finance, with the central bank financing the government by printing money 3 Classical Economics and Sound Finance Sound finance was a view of fiscal policy that the government .

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