Macroeconomics: Budget Balance
Bubble Savings (6/17/2010)
The US has been spending more than it earns and has to borrow from abroad to fund its real investment.
The US has been spending more than it earns and has to borrow from abroad to fund its real investment.
Debt Trap (6/18/2010)
Debt/income ratio will rise as long as the deficit exceeds debt times the income growth rate.
Debt/income ratio will rise as long as the deficit exceeds debt times the income growth rate.
Flows and Stocks (6/17/2010)
The excess of inflows over outflows adds to the stock if flows are not instantly perishable.
The excess of inflows over outflows adds to the stock if flows are not instantly perishable.
Ponzi Schemes (1/22/2010)
Medicare and Social Security are Ponzi schemes whose long-term financial viability depends on an ever larger body of later contributors paying off a much smaller body of earlier contributors.
Medicare and Social Security are Ponzi schemes whose long-term financial viability depends on an ever larger body of later contributors paying off a much smaller body of earlier contributors.
