曼昆《宏观经济学》(第五版)课堂讲义PPT(英文)Ch15.pptVIP

What is the government debt and the annual budget deficit? The Ricardian View of Government Debt Forward-looking consumers perceive that lower taxes now mean higher taxes later, leaving consumption unchanged. “Tax cuts are simply tax postponements.” When the government borrows to pay for its current spending(higher G), rational consumers look ahead to the future taxes required to support this debt. Myopic (short-sighted) Consumers Proponents of the Ricardian view assume that people are rational when making decisions such as choosing how much of their income to consume and how much to save. When the government borrows to pay for current spending, rational consumers look ahead to anticipate the future taxes required to support this debt. One argument for the traditional view is that people are myopic, meaning that they see a decrease in taxes in such a way that their current consumption increases because of this new “wealth.” They don’t see that when expansionary fiscal policy is financed through bonds, they will just have to pay more taxes in the future since bonds are just a tax-postponements. * Chapter Fifteen * A PowerPoint?Tutorial to Accompany macroeconomics, 5th ed. N. Gregory MankiwMannig J. Simidian ? CHAPTER FIFTEEN Government Debt Evaluation only. Created with Aspose.Slides for .NET 3.5 Client Profile 5.2.0.0. Copyright 2004-2011 Aspose Pty Ltd. Annual Deficit (2002) Annual Deficit (2001) Annual Deficit (2000) Annual Deficit (1999) Annual Deficit (1998) Annual Deficit (1997) The government debt is an accumulation of all past annual deficits. In 2001, the debt of the U.S. federal government was $3.2 trillion. When a government spends more than it collects in taxes, it borrows from the private sector to finance the budget deficit. Evaluation only. Created with Aspose.Slides for .NET 3.5 Client Profile 5.2.0.0. Copyright 2004-2011 Aspose Pty Ltd. Modifies the real value of outstanding public debt to reflect current inflation. Subtracts government assets