Search for tag: "stabilization"
The Permanent Income Consumption TheoryThis chapter focuses on the permanent income view of consumption and saving, delving deeply into mechanics and also exploring how taxes can be incorporated into a discussion of consumption and…
From SDG Academy
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Inflation, the Fiscal Budget, and SeigniorageThis chapter discusses inflation, unemployment, and stabilization. It begins with the example of hyperinflation in Zimbabwe in the late 2000s, and provides other real world examples. It talks about…
From SDG Academy
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Stabilization ThemesThis chapter focuses on stabilization, which is the reduction of inflation to a very low level, and explains the tools to understand stabilization. These tools include stabilizing the exchange rate,…
From SDG Academy
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The Basics of Aggregate Demand ManagementThis chapter talks about the role of government induced tools, such as actions by the central bank or actions in budget spending and tax decisions, towards a stabilization policy. Stabilization…
From SDG Academy
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Three Big Problems with Aggregate Demand ManagementThis chapter mentions three problems with stimulus policies. First, it may not be so easy to raise aggregate demand using the specific policy tools that government has, and examples are tax cuts and…
From SDG Academy
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