3 ms·
That's a nice macroeconomic model you have there. But what happens when G/D < x0 and then you increase D? But you're right about the hyperinflation thing. I wa
by Pitarou 12y ago
That's a nice macroeconomic model you have there. But what happens when G/D < x0 and then you increase D?
But you're right about the hyperinflation thing. I was being overly dramatic. I should have said: And that, my friends, is a recipe for a collapse in confidence in the yen. But the effects are pretty similar.
- yk 12y agoI would call it rather a back of the envelope calculation, but if the multiplyer is too small, then you increase dept more than GDP. So yes, the policy of a stimulus program still needs to be good enough, my point is that after a certain point you will not get out of financial trouble by cutting spending.
- kostyk 12y agoand again "dept" hmmm