伯南克宏观经济学ch15
宏观经济学(第十版)N格里高利曼昆(2024)
02 国民收入核算与宏观经济指标
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国内生产总值(GDP)的核算
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生产法
通过核算一定时期内各生产单位所生产的全部最终产品的 价值总量来计算GDP，即各生产单位的总产值减去中间投 入后的余额。
支出法
通过核算一定时期内整个社会购买最终产品的总支出计算 GDP，包括个人消费支出、政府购买支出、固定资本形成 总额和净出口四部分。
失业的类型
根据失业的原因和性质，可以将 失业分为摩擦性失业、结构性失 业、周期性失业和自然失业等类 型。
失业的原因
失业的原因多种多样，包括经济 周期波动、产业结构调整、技术 进步、劳动力市场制度不完善、 信息不对称等。
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通货膨胀的定义、类型与原因
通货膨胀的定义
通货膨胀是指一般物价水平持续上涨的现象，即货币的购买力不断下降的过程。
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04 货币、利率与金融市场
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货币的定义、职能与类型
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货币的定义
货币是经济中人们用于购 买商品和劳务的一组资产 。
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货币的职能
货币在经济中主要有交易 媒介、价值尺度、支付手 段、价值贮藏等职能。
货币的类型
根据货币的流动性和可接 受性，可分为现金（如纸 币、硬币）、活期存款、 定期存款、储蓄存款等。
VS
人类发展指数(HDI)
联合国开发计划署提出的，包括预期寿命 、教育水平和生活质量三个方面的综合指 标。
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03 失业、通货膨胀与经济增长
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【精品】宏观经济学ch16
【关键字】精品*CHAPTER 16(Core Chapter)THE INTERNATIONAL MONETARY SYSTEM:PAST, PRESENT, AND FUTUREOUTLINE16.1Introduction16.2Meaning of International Monetary System16.3The Gold Standard and the Interwar Experience16.4The Bretton Woods System16.5Operation and Evolution of the Bretton Woods SystemCase Study 16-1 Macroeconomic Performance Under Different Exchange Rate Regimes 16.6U.S. Balance-of-Payments Deficits and Collapse of the Bretton Woods System16.7Operation of the Present International Monetary System16.8Problems with the Present Exchange Rate Arrangements and Proposals for ReformsCase Study 16-2 Exchange Rate Volatility and Misalignments16.9Financial Crises in Emerging Market EconomiesCase Study 16-3 The Anatomy of a Currency Crisis: The Collapse of the Mexican Peso Case Study 16.4 Chronology of Economic Crises in Emerging Markets: From Thailand to ArgentinaCase Study 16.5 The U.S. Subprime Mortgage Crisis and Sovereign Wealth Fund16.10 Other Current International Economic ProblemsCase Study 16-6 Trade Imbalances of the Leading Industrial NationsKEY TERMSInternational monetary system Stadby arrangementsAdjustment Swap arrangementsLiquidity Special Drawing Rights (SDRs) Confidence Dollar shortageInternational Monetary Fund (IMF) SeigniorageBretton Woods System Dollar standardIntervention currency Smithsonian AgreementFundamental disequilibrium Dollar glutKEY TERMS (cont.)Currency convertibility Jamaica AccordsInternational Bank for Reconstruction and Benign neglectDevelopment (IBRD or World Bank) First credit trancheInternational Development Association (IDA) New Arrangements to Borrow (NAB) International Finance Corporation IMF conditionalityGold tranche Dollar overhangCredit tranches Substitution accountNet IMF position Target zonesGeneral Arrangements to Borrow (GAB) Subprime mortgage crisisSovereign Wealth FundsLECTURE GUIDE1.This core chapter examines the operation of the international monetary system from thegold standard to the present managed exchange rate system, using the theoretical analysesof the previous chapters as background. It also examines proposals for reforms.2.I would cover Sections 16-1 to 16-4 in the first lecture and three sections in the second andthird lecture.3.I would use each lecture to show the relevance and importance of the analysis of previouschapters in analyzing and evaluating the operation of the various adjustment mechanisms discussed throughout the semester. Indeed, this will also serve a summary review of the course for the final.ANSWERS TO REVIEW QUESTIONS AND PROBLEMS1. a. The primary goal of nations today is internal balance, while during the heyday of thegold standard nations gave priority to external balance. The gold standard days were also characterized by much greater price flexibility than today. Furthermore, London was then the undisputed center of international trade and finance and as a result there were nodestabilizing international capital flows, as frequently occur today between the differentinternational monetary centers.b. The reestablishment of the gold standard today would require the reestablishment ofall the conditions that made for its smooth operation from 1880 until 1914. Nations would have to place priority on external over internal balance and give up their use of monetary policy. They would have to eliminate domestic restrictions on price flexibility (i.e., abolish price ceilings, minimum wages, interest restrictions, etc.), and reestablish the supremacy of one international monetary center (New York, Tokyo, or London) so as to avoiddestabilizing capital flows among the international monetary centers in existence today.Needless to say, this is impossible.2. a. The nation was to pay 25% of its quota ($25 million) in gold and the remainder in thenation’s currency. Under the original rules the nation could borrow no more than 25% of its quota ($25 million for this nation) from the IMF in any one year.b. Today, the nation would pay 25 percent of its quota in SDRs or in currencies of othermembers selected by the IMF, and the rest in their own currency. Under the new rules inoperation today, the nation can borrow a maximum of up to 50 percent of its quota in anyone year plus additional amounts under the various programs to facilitate borrowing thatthe IMF has put in place over the years.3. a. The nation could attempt to discourage large destabilizing international capital flowsby purchasing the foreign currency in the spot market. This tends to appreciate the foreign currency and discourage international capital inflows.b. The same is true today, except that today exchange rates can fluctuate much more thanunder the Bretton Woods System and capital moves much more freely internationally than under the old Bretton Woods System, so that the policy of intervening in the spot marketis likely to be much less effective.4. Under the Bretton Woods system, the dollar was truly an international currency. Fromabout the mid-sixties until the collapse of the system in 1971, however, foreignersbecame progressively more reluctant to hold dollars as the amount of officially foreign-held dollars became progressively higher than U.S. gold reserves. Some other "strong"currencies such as the German mark also began to be widely held as internationalreserves. But the dollar remained by far the most widely-held international currency.5. a. The immediate cause of the collapse of the Bretton Woods system was the demand onthe part of some European central banks to convert some of their dollar holdings intogold. Had the United States done so, others would have demanded gold for dollars, soonexhausting all U.S. gold reserves. Thus on August 15, 1971, the U.S. suspended theconvertibility of dollars into gold. This put the world on a pure paper (dollar) standard.b. The fundamental cause of the collapse of the Bretton Woods system was the lack of anadequate adjustment mechanism as nations were very reluctant to change their par value when in fundamental disequilibrium. They relied instead on a web of ad hoc measureswhich in the end became unwieldy and inadequate for the task.6.The present international monetary system is a managed floating exchange rate systemwith nations intervening in the foreign exchange markets to smooth out excessivefluctuations in exchange rates. Thus, there is still a need for international reserves. Thedollar (without any backing to gold) remains the most important international currency.7. a. The fundamental reason for the Mexican currency crisis was that Mexico relied onkeeping an overvalued exchange rate that would lead to a trade deficit and thus a capital inflow to help finance investments and growth. This worked fine until the middle of 1994 when investors began to doubt Mexico’s ability to repay foreign loans and thus withdrew their capital. This caused the international value of the Mexican pesos to fall sharply (i.e., to depreciate very heavily with respect to the dollar), inflation and interest rates to risesharply, and the nation to plunge into deep recession.b. The IMF proposed to avoid the recurrence of a Mexican-style currency crisis bysetting up an early-warning system for developing countries to provide accurate andtimely financial data so that investors can anticipate problems before they become crisesand by increasing the amount that it could borrow in order to provide financial assistanceto those nations that do face a serious financial crisis.8. a. The Mexican currency and financial crisis taught developing nations that they cannotrely excessively on short-term capital inflows (which can as quickly flow in as flow out)to finance growth and development. They should instead try to increase domestic savingsand encourage long-term capital inflows.b. Another lesson from the Mexican crisis is that when a currency and financial crisisdoes hit, it is best to nip it in the bud and take immediate and bold action to overcome it.For example, if Mexico had devalued the pesos in April or even September 1994 when its international reserves were still plentiful, the crisis would probably not have been as deepand serious as it became.9. a. All the economic crises in emerging market economies during the past decade 1990sstarted with a massive withdrawal of short-term liquid funds at the first sign of financial weakness in the nation. Foreign investors poured funds into many emerging marketsduring the 1990s in order to take advantage of high returns and to diversify theirportfolios after these nations liberalized their capital markets, but they quickly got out of the country as soon as they began to fear that an economic crisis was imminent. This was the case in each of the six emerging market crises: Mexico in 1994-5, South-East Asia in 1997-1999, Russia in summer 1998, Brazil in 1999, Turkey in 2001, and Argentina in2002.b. Proposed solutions to avoid future crises in emerging market economies include:(1) Avoid over borrowing of short-term funds (2) increased transparency in financialrelations, (3) strengthening emerging markets’ banking and financial system, and(4) greater private sector involvement in rescue programs.10. The most important international monetary problems facing the world today are: (1) thelarge exchange rate volatility and disequilibria, (2) frequent economic crises in emerging inmarket economies (which could spread to high-income countries). Other serious international economic problems are: (1) trade protectionism in advanced countries in the context of a rapidly globalizing world, (2) deep structural imbalances in the United States, slow growth in Europe and Japan, and insufficient restructuring in transition economiesof Central and Eastern Europe, (3) deep poverty in many developing countries, and (4) resource scarcity, environmental degradation, and climate change and the danger that they pose for continued growth and sustainable world development.SAMPLE TEST QUESTIONS1. Which of the following statements about the gold standard is true?a. London was the undisputed center of international trade and financeb. international trade and international capital flows were mostly unrestrictedc. international liquid capital flows were mostly stabilizingd. all of the above2. Balance of payments adjustment under the gold standard is now believed to have occurredprimarily through:a. the price-specie-flow mechanismb. gold shipmentsc. stabilizing short-term capital flowsd. free trade3. The interwar period was characterized by:a. the operation of the gold standardb. chaotic conditions in international trade and financec. free traded. stabilizing international capital flows4. The Bretton Woods System was a:a. gold standardb. managed floating exchange rate systemc. gold-exchange standardd. crawling peg system5. On which of the following principles was the Bretton Woods System based on?a. fixed exchange ratesb. currency convertibilityc. free traded. all of the above6. The Bretton Woods System:a. allowed nation to change their par values when facing fundamental disequilibriumb. allowed nations to change their par values when facing a temporary disequilibriumc. did not allow nations to change their par exchange rates under any circumstanced. allowed only deficit nations to change their par values, but not surplus nations7. Which of the following did not represent an evolution of the Bretton Woods System?a. general arrangements to borrowb. managed floatingc. standby arrangementsd. special drawing rights8. Which of the following was a primary cause of the U.S. balance of payments deficits duringthe late 1960s?a. capital outflowsb. domestic inflationc. increased foreign competitiond. all of the above9. During the 1960s the U.S. attempted to correct its balance of payments deficits by:a. ad hoc measuresb. devaluing the dollarc. deflating the economyd. restricting imports10. The immediate cause for the collapse of the Bretton Woods System was:a. the expectation that the United States would soon be forced to devalue the dollarb. the massive flight of liquid capital from the United Statesc. the attempt by three small European central banks to convert part of their dollarholdings into gold at the Fedd. all of the above11. The fundamental cause for the collapse of the Bretton Woods System was:a. lack of confidenceb. inadequate liquidityc. lack of an adequate adjustment mechanismd. all of the above12. The present international monetary system is a:a. gold standardb. flexible exchange rate systemc. managed exchange rate systemd. a target zone system13. Which of the following is false with regard to the present international monetary system?a. special drawing rights are the primary reserve assetb. monetary authorities intervene in foreign exchange markets to smooth out excessiveshort-run fluctuations in exchange ratesc. it was forced on the world by the collapse of the Bretton Woods Systemd. it was formally recognized in the Jamaica Accords14. Which of the following statements is false with regard to 12 countries of the European monetaryUnion?a. they have adopted a single currencyb. they have established a single central bankc. they conduct a common fiscal policyd. they conduct a single monetary policy15. Which is one of the most serious international economic problems facing the world today?a. large volatility and disequilibria in exchange rates and frequent crises in emerging marketsb. the rise of protectionism in developed countries and the high structural unemployment inWestern Europec. the restructuring problems of Eastern Europe and the former Soviet Union and the deeppoverty of some of the poorest developing countriesd. all of the above此文档是由网络收集并进行重新排版整理.word可编辑版本！。
Chapter_15 The Demand for Money(宏观经济学,多恩布什,第十版)
•
The more money a person holds, the less likely he or she is to incur the costs of illiquidity
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The more money a person holds, the more interest he/she will give up → similar tradeoff encountered with transactions demand for money
4.
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Standard of deferred payment
Money units are used in long term transactions (ex. loans)
15-5
The Demand for Money: Theory
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The demand for money is the demand for real money balances → people hold money for its purchasing power
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As liquidity of an asset decreases, the interest yield increases
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A typical economic tradeoff: in order to get more liquidity, asset holders have to sacrifice yield
•
•
At the end of 2005, M1 = $4,596 per person Debate whether broader measure, M2, might better meet the definition of money in a modern payment system
宏观经济学 英语ch05lectures
2
3
4
Explain and describe the limitations of real GDP as a measure of the standard of living.
5.1 GDP, INCOME, AND EXPENDITURE
GDP Defined
Gross domestic product or GDP
The value of exports of goods and services minus the value of imports of goods and services.
5.1 GDP, INCOME, AND EXPENDITURE
Exports of goods and services
பைடு நூலகம்
Financial Assets
When households buy financial assets such as bonds and stocks, they are making loans, not buying goods and services.
5.2 MEASURING U.S. GDP
5.1 GDP, INCOME, AND EXPENDITURE
Government purchases of goods and services
The expenditure by all levels of government on goods and services.
Net exports of goods and services
5.1 GDP, INCOME, AND EXPENDITURE
Expenditure Equals Income
伯南克宏观经济学ch14
Principles of Money Supply Determination
• The money supply under fractional reserve banking
– Each unit of monetary base allows 1/res of money to be created – The monetary base is called high-powered money because each unit of the base that is issued leads to the creation of more money
• The money supply with both public holdings of currency and fractional reserve banking
– Taking the ratio of these two equations gives M/BASE (CU + DEP)/(CU + RES) (14.6) – This can be written as M/BASE [(CU/DEP) + 1]/[(CU/DEP) + RES/DEP)] (14.7) – The currency-deposit ratio (CU/DEP, or cu) is determined by the public – The reserve-deposit ratio (RES/DEP, or res) is determined by banks
Principles of Money Supply Determination
• The money supply under fractional reserve banking
中级宏观经济学(2015) (1)(1)
122 第一章 绪论 一、宏观经济学的研究对象 在过去一百年间，为什么一些国家收入迅速增长而另一些国家仍然陷于贫困之中？为什么一些国家通货膨胀率居高不下而另一些国家却维持了物价的稳定？为什么所有国家都经历衰退和萧条——周期性的收入减少和失业增加的时期——而政府的政策可以怎样减少这些事件发生的频率和减轻其严重程度？宏观经济学，通过对整体经济的研究，正力图回答这些问题以及许多相关的问题。 宏观经济学以社会整体的经济行为及结果为研究对象，运用总量分析方法（即宏观分析方法）, 研究整个社会的经济活动，其中国民收入是进行宏观分析的关键,内容涉及国内生产总值的核算、经济增长理论、经济繁荣与衰退理论、宏观经济政策的运行机制及政策效应分析。 经济整体（或称为“经济体”）是指一个生产、分配和消费商品与服务的体系。它以是一个国家或经济独立的地区。
二、宏观经济学的形成与发展 早先人们出于什么样的动机来研究经济学？现代人一提到经济就会联想到发财致富，认为经济学是一门研究发财致富的学问，古人研究经济学的出发点、动机和现代人是相同的。所以经济学是研究发财致富的学问，经济学起源于对价值来源的探讨。古人认为财富即金银财宝、贵金属，财富每时每刻在市场上交易和流通着，所以财富产生于商业、流通领域。一个国家要想致富就应大力发展商业，同时限制贵金属流出（也是一种国家干预）。这就是经济学的史前阶段对价值来源、财富产生的认识，被称为重商主义。 古典经济学从17世纪中期开始，到19世纪70年代前为止。古典经济学的中心是研究国民财富如何增长，它强调了财富是物质产品，因此增加财富的方法就是通过资本积累等途径来发展生产。亚当·斯密第一次宣称任何一个生产部门的劳动都是国民财富的源泉，他一方面批判了重商主义所主张的只有对外贸易才是财富来源的错误观点，另一方面又克服了重农主义所持有的只有农业劳动才能创造财富的偏见，从而明确提出了劳动价值论。古典经济学经历了200多年的发展，但是一个很小的经济问题——新老葡萄酒的价值迥异给它带来了严重的危机。一瓶老酒的价格是一瓶新酒价格的一千倍甚至一万倍，原因何在？如果按照劳动价值论，那商品的价值取决于凝结在商品中的无差别的人类劳动。从葡萄酒的生产过程来看，从葡萄的采集、发酵、酿制、装瓶、出厂，这中间一瓶老葡萄酒和新葡萄酒所凝结在的人类劳动几乎是一样的。若假定保存成本可以忽略不计，那为什么价值就相差成千上万倍呢？在这样的背景下，英国古典经济学从权 122
巴罗宏观经济学：现代观点第15章资料教程
2
Effects of Money in the Equilibrium Business-Cycle Model
If M does not respond to changes in the real quantity demanded, P will move in the direction opposite to the change in L(Y, i).
In this analysis, we imagine that economic fluctuations result from monetary shocks—that is, exogenous variations in the nominal quantity of money, M.
Changes in the behavior of the money stock have been closely associated with changes in economic activity, money income, and prices.
The interrelation between monetary and economic change has been highly stable.
If w/Pe increases, the worker increases the quantity of labor supplied, Ls.
Macroeconomics Chapter 15
10
The Price-Misperceptions Model
A Model with Non-Neutral Effects of Money
In our equilibrium business-cycle model： Monetary shocks => no effects on real economy
宏观经济学 ch1 宏观经济学的科学
Q
轿车数 量
第一章：宏观经济学概述
slide 32
（二）决定模型的要素：内生变量与外生变量
1、内生变量（endogenous variables）：由模型
本身决定的或指模型要解释的变量。（P7）
2、外生变量（exogenous variables）：是由模
型外的其它因素决定的变量，它本身不能由
模型解释。 在模型中，它们的值或变化被认
第一章：宏观经济学概述
slide 36
（三）模型分析的前提假设：价格的伸缩性与粘性 1、市场出清：市场上供给等于需求的一种状态，
在形成市场出清时，价格是伸缩性的。
2、短期看，许多价格都是粘性的——相对于供需 失衡，价格的反应存在时滞。
例如，
– 劳动合同确定的是名义工资，其期限往往是一年甚
至更长 – 出版商常常要3—4年才会调整一次其杂志的价格
第一章：宏观经济学概述
slide 22
二、宏观经济学的研究方法
（一）经济模型
1、定义：用来描述所研究的经济事物的有关经济
变量之间相互关系的理论结构。（P8）
2、作用：
• 解释经济变量间的相互关系
• 解释某种经济行为
• 设计政策以改善经济运行状况
第一章：宏观经济学概述
slide 23
一个简单的经济模型: 新轿车的供给与需求
第一章：宏观经济学概述
slide 15
第一章：宏观经济学概述
slide 16
失业与收入的增长
5 4 3 2 1 0 -1 -2 -3 -4 -5 1965
%
1970
1975
1980
1985
1990
1995 失业率的变化
布兰查德宏观经济学
Price of the one-year
bond:
$100 $P1t 1 i1t
Price of the two-year bond:
$100 $P2t (1i1t)(1ie1t1)
Chapter 15: Financial Markets and Expectations
The yield to maturity on a two-year bond, is closely approximated by:
i2t
1 2(i1t
i ) e 1t1
In words, the two-year interest rate is the average of the current one-year interest rate and next year’s expected one-year interest rate.
Given
$ P2t
$ Pe1t 1 1 i1t
and
$Pe1t1
$100 (1ie1t1)
,
then:
$100 $P2t (1i1t)(1ie1t1)
In words, the price of two-year bonds is the present value of the payment in two years— discounted using current and next year’s expected one-year interest rate.
The relation between maturity and yield is called the yield curve, or the term structure of interest rates.
第15章 开放经济的宏观经济学(《西方经济学-宏观》PPT课件)
Ɛ Ɛ1 (a) Ɛ2 O
P P1 (b) P2
O
图15-11
LM*(P1) Y1
LM*(P2)
从蒙代尔-弗莱明模型得
出的开放经济下的总需
求曲线与封闭经济下的
总需求曲线是一样的，
都是一条向右下方倾斜
IS* 的曲线。
Y2
Y
利用蒙代尔-弗莱明模型， 结合长期均衡分析方法， 能够分析小国开放经济 的短期与长期均衡关系 AD 以及政策效应。
T0 O
逆差 －
T1
T2
一般理论上，本国汇率下降（或本币贬值） 将增加净出口，在实际经济中，本国货币 贬值对净出口影响的程度，还要看出口商 品和进口商品的需求弹性，如果两者之和 的绝对值大于1，则本国货币贬值可以改善 一国的贸易收支状况，这一结论被称为马 歇尔-勒纳条件。
时间T
此外，本币贬值对贸易收支状况的改 善存在一定的时滞，具体可以划分为 三个阶段：货币合同阶段、传导阶段、 数量调整阶段。如图15-2所示。
种货币的数量。用 表e示。名义汇率有两种不同的标价方法，
一种是直接标价法，也称为应付标价法；另一种是间接标价法， 也称为应收标价法。
实际汇率
用两国（或地区）价格水平对名义汇率加以调整后的汇率，用
表示。
第一节 国际收支与汇率
二、汇率与汇率制度
实际汇率有时也被称为贸易条件，如果国内商品用本
假设前提
第一，价格在短期内是不变的，经济中的产出完全由 有效需求决定；
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The Government Budget: Some Facts and Figures
• Government outlays; three categories of government expenditures
– Government purchases (G) – Transfer payments (TR) – Net interest payments (INT) – Also: Subsidies less surpluses of government enterprises; relatively small, so we ignore it
Government Spending, Taxes, and the Macroeconomy
• Practical issues of using fiscal policy
– – – – Lags Uncertainty Crowding-out effect Tax-induced distortions
Government Spending, Taxes, and the Macroeconomy
• Incentive effects of fiscal policy
– Average versus marginal tax rates
• If the average tax rate increases, with the marginal tax rate held constant, a person will increase labor supply • If the marginal tax rate increases, with the average tax rate held constant, a person will decrease labor supply
The Government Budget: Some Facts and Figures
• Taxes
– The composition of outlays and taxes: the Federal government versus state and local governments
Government Deficits and Debt
• The growth of the government debt
– The deficit is the difference between expenditures and revenues in any fiscal year – The debt is the total value of outstanding government bonds on a given date – The deficit is the change in the debt in a year
The Government Budget: Some Facts and Figures
• Deficits and surpluses
– When outlays exceed revenues, there is a deficit; when revenues exceed outlays, there is a surplus – The total deficit tells the amount the government must borrow to cover all its expenditures – deficit outlays – tax revenues government purchases transfers + net interest – tax revenues G TR INT – T (15.1)
The Government Budget: Some Facts and Figures
• Deficits and surpluses
– Another useful deficit definition is the primary government budget deficit, which excludes net interest payments (payments for past government spending ) The primary deficit tells if the government’s receipts are enough to cover its current purchases and transfers primary deficit outlays – net interest – tax revenues government purchases + transfers – tax revenues G TR – T (15.2)
Government Spending, Taxes, and the Macroeconomy
• Incentive effects of fiscal policy
– Average versus marginal tax rates
• Average tax rate total taxes / pretax income • Marginal tax rate taxes due from an additional dollar of income
• Ricardian equivalence proposition
Government Spending, Taxes, and the Macroeconomy
• • • • Primary effect Induction effect Total effect Fiscal policy multiplier
– Debt–GDP ratio accounts for the ability to pay off the debt – Change in debt–GDP ratio deficit/nominal GDP – [(total debt/nominal GDP) × growth rate of nominal GDP] (15.4) – So two things cause the debt–GDP ratio to rise
• The full-employment deficit is a measure of what the government budget deficit would be if the economy were at full employment • So the full-employment deficit doesn’t change with the business cycle, only with changes in government policy regarding spending and taxation
The Government Budget: Some Facts and Figures
• Taxes
– Four principal categories
• • • • Personal taxes (income taxes and property taxes) Contributions for social insurance Taxes on production and imports Corporate taxes
Government Spending, Taxes, and the Macroeconomy
• Government capital formation
– Long-lived physical assets owned by the government, like roads, schools, and sewer systems – Human capital formation through expenditures on health, nutrition, and education
• B nominal value of government bonds outstanding • B nominal government budget deficit (15.3)
Government Deficits and Debt
• The growth of the government debt
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Figure 15.3 The relationship between the total budget deficit and the primary deficit
The Government Budget: Some Facts and Figures
• Deficits and surpluses
•
Government Spending, Taxes, and the Macroeconomy
• Fiscal policy and aggregate demand
– An increase in government purchases increases aggregate demand by shifting the IS curve up – The effect of tax changes depends on the economic model
– Another set of deficit concepts
• The current deficit equals the deficit minus government investment The primary current deficit equals the primary deficit minus government investment, which equals the current deficit minus interest payments