巴罗宏观经济：现代观点第章.pptVIP

M * Budget Constraints and Budget Deficits A Simple Case of Ricardian Equivalence Suppose, to begin, that the government balances its budget each year. Then in year1 G1 = T1 Continuing on, if the government balances its budget every year, Bgt /P, =0 in every year t. M * Budget Constraints and Budget Deficits A Simple Case of Ricardian Equivalence now the government runs a real budget deficit of one unit? the deficit must come from a cut in real taxes, T1, by one unit. the real deficit of one unit requires the government to issue one unit of real public debt at the end of year 1 Bg1 /P