2174-Macroeconomic Analysis-2425_S1

Government debt dynamics

Summary

• The Public sector inter-temporal budget constrain. Financial repression. The snowball effect. D-Max. Consequences of postponing a fiscal adjustment. Deffault. Liquidity vs solvency crisis. Debt forgiveness. The holdout problem. Inflation tax and seigniorage. The unpleasant monetarist arithmetic. The inflation tax laffer curve. Hyperinflation. 

Class Content

		Topic	Handout exercises
	Video lecture	Lecture Oct 22: The debt equation; snowball effect; Lecture Oct 23: fiscal adjustment; Debt overhang. Lecture Oct 28: High inflation	Solutions: 16.9; 16.10; 16.11; 16.12; 16.13; 16.14;  16.16; 16.17 ; 16.19; 16.20. 16.22

Activities

		Access	Deadline	Other materials
	Quizzes	Quiz 4

Documents

		Access
	Readings	Hand-out: debt dynamics PowerPoint: here For more,  please see here  (continuous update)