Browsing All posts tagged under »prescott«

Obama’s debt and the future of the american people continued…

March 1, 2010 by

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What are the implications of running such a high debt?             If we subscribe to the Ricardian equivalence,  assuming that individuals have perfect foresight, we have perfect capital markets and there are intergenerational transfers from one generation to the next, financing deficits through higher taxes later will not alter consumption. This theory built around the […]