tag:blogger.com,1999:blog-7562826833514049440.post8389252055548175122..comments2019-01-08T21:06:10.972-08:00Comments on The Ramblings of an Amateur Economist: Fiscal Policy Does Not Affect Aggregate DemandJohn Handleyhttp://www.blogger.com/profile/16057855086740377031noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-7562826833514049440.post-17590172380354453422016-05-22T05:19:31.401-07:002016-05-22T05:19:31.401-07:00Hello.
You may not have seen this?
“ . . . wher...Hello.<br /><br />You may not have seen this?<br /><br />“ . . . whereby the coefficient for ∆g is expected to be close to –1. In other words, given the amount of credit creation produced by the banking system and the central bank, an autonomous increase in government expenditure g must result in an equal reduction in private demand. If the government issues bonds to fund fiscal expenditure, private sector investors (such as life insurance companies) that purchase the bonds must withdraw purchasing power elsewhere from the economy. The same applies (more visibly) to tax-financed government spending. With unchanged credit creation, every yen in additional government spending reduces private sector activity by one yen. “<br />http://eprints.soton.ac.uk/339271/1/Werner_IRFA_QTC_2012.pdf<br />Postkeyhttps://www.blogger.com/profile/11747509012748106827noreply@blogger.comtag:blogger.com,1999:blog-7562826833514049440.post-81344403758027563582016-03-15T15:39:59.255-07:002016-03-15T15:39:59.255-07:00Either way should work given the title, but affect...Either way should work given the title, but affect is probably better. <br /><br />Thanks as always.John Handleyhttps://www.blogger.com/profile/16057855086740377031noreply@blogger.comtag:blogger.com,1999:blog-7562826833514049440.post-24211745088196028452016-03-15T15:18:53.300-07:002016-03-15T15:18:53.300-07:00You title: I know "effect" can be used a...You title: I know "effect" can be used as a verb, but did you mean "affect" in this case?<br /><br />1st sentence: "...aggregate demand in ant DSGE."<br /><br />"ant" should be "any?"<br /><br />Tom Brownhttps://www.blogger.com/profile/17654184190478330946noreply@blogger.com