tag:blogger.com,1999:blog-4900303239154048192.post4738142244496360885..comments2024-03-06T06:34:42.881-05:00Comments on EconoSpeak: Summers and RicardoUnknownnoreply@blogger.comBlogger7125tag:blogger.com,1999:blog-4900303239154048192.post-53221350838449008672021-02-08T20:20:06.474-05:002021-02-08T20:20:06.474-05:00Everything I know about economics I learned from B...Everything I know about economics I learned from Bill Mitchell. This essay of his us germane. http://bilbo.economicoutlook.net/blog/?p=8252Chris Herberthttps://www.blogger.com/profile/15802152057828220791noreply@blogger.comtag:blogger.com,1999:blog-4900303239154048192.post-90145703148720563762021-02-08T00:45:43.742-05:002021-02-08T00:45:43.742-05:00Anonymous: Agreed. Both PGL and I made your point ...Anonymous: Agreed. Both PGL and I made your point about government spending on G+S vs. tax-cuts/transfer payments back in 2009, when Cochrane and Lucas were saying that the RET implies that neither tax cuts nor government spending increases Aggregate Demand, so that the ARA would be useless. When G increases, C falls but not by as much, so AD increases, even in a Ricardian world. The Wikipedia author does not understand this point.kevin quinnhttps://www.blogger.com/profile/04880872194080353414noreply@blogger.comtag:blogger.com,1999:blog-4900303239154048192.post-35150246038331488212021-02-07T23:32:33.192-05:002021-02-07T23:32:33.192-05:00what has happened to Peter Navarro...it is getting...what has happened to Peter Navarro...it is getting worse with him claiming Barr was part of deep state coup against trump! see fox news interview:<br /><br />https://twitter.com/i/status/1358444331732852737Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4900303239154048192.post-52238458209478288352021-02-07T10:05:06.407-05:002021-02-07T10:05:06.407-05:00a bit off topic but interesting article on efficie...a bit off topic but interesting article on efficiency in a pandemic context....<br /><br />https://www.washingtonpost.com/outlook/2021/02/05/pandemic-food-resilience/Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4900303239154048192.post-48885653524602969372021-02-07T07:00:04.556-05:002021-02-07T07:00:04.556-05:00Let's say that consumers are not borrowing con...Let's say that consumers are not borrowing constrained so temporary changes in net taxes do not impact consumption. That does not mean fiscal policy will not change aggregate demand if there is some large one-time boost to government purchases as in the war on corona virus. <br /><br />Now Summers is stull confused as he frets over the need to government purchases for longer-term fiscal projects. Here Ricardian Equivalence might tell us that these projects will induce a fall in consumption whether immediately taxed or financed by deferred taxation. Of course infrastructure investment would tend to raise economic growth.<br /><br />Basic point still holds - there are various types of fiscal stimulus and even a Ricardian needs to be careful how to model out the aggregate demand effects.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4900303239154048192.post-80652699013183377132021-02-06T21:53:57.992-05:002021-02-06T21:53:57.992-05:00Curiously enough, some critics of the proposal are...Curiously enough, some critics of the proposal are complaining about exactly this, that the way it is structured will lead to a large portion of it simply being saved, no stimulus at all.rosserjb@jmu.eduhttps://www.blogger.com/profile/09300046915843554101noreply@blogger.comtag:blogger.com,1999:blog-4900303239154048192.post-53362563186726656522021-02-06T18:31:44.522-05:002021-02-06T18:31:44.522-05:00https://en.wikipedia.org/wiki/Ricardian_equivalenc...https://en.wikipedia.org/wiki/Ricardian_equivalence<br /><br />The Ricardian equivalence proposition is an economic hypothesis holding that consumers are forward looking and so internalize the government's budget constraint when making their consumption decisions. This leads to the result that, for a given pattern of government spending, the method of financing that spending does not affect agents' consumption decisions, and thus, it does not change aggregate demand. Thus, this theorem is used as an argument against tax cuts and spending increases aimed to boost aggregate demand.Anonymousnoreply@blogger.com