{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

ECON2004Lecture14

ECON2004Lecture14 - The roles of fiscal policy active...

Info icon This preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
ECON2004 Macro Term 1, Lecture 14: Fiscal policy 1 Lecture 14: Fiscal policy Reading. Core: Carlin and Soskice Ch 6, section 1,2,3,5 Blanchard Ch 26 Optional: “Putting the air back in”, The Economist, Oct 30 th , 2008 “Revisionism”, The Economist, Jul 21st 2005 “Unstable and incredible”, The Economist, Nov 27th 2003 “Budget games”, The Economist, Jan 28th 1999 “Paths to prosperity ”, The Economist,Oct 7th 2004 ECON2004 Macro Term 1, Lecture 14: Fiscal policy 2 The roles of fiscal policy - active stabilisation (discretionary policy) - automatic stabilisers - finance government expenditure in a sustainable way
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
ECON2004 Macro Term 1, Lecture 14: Fiscal policy 3 The government’s budget constraint 1 t t t t t G iB T B M - + = + Δ + Δ Government spending can be financed in three ways 1. 2. 3. Define the budget deficit as ECON2004 Macro Term 1, Lecture 14: Fiscal policy 4 Fiscal policy in IS-LM Bond finance AD=C+I+G Tax finance C = c 0 +c l (1-t)Y See Carlin and Soskice Ch6, sect 2.02 IS r LM Y IS r LM Y
Image of page 2
ECON2004 Macro Term 1, Lecture 14: Fiscal policy 5
Image of page 3

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern