## Introduction to Dynamic Macroeconomic Theory: An Overlapping Generations ApproachEconomies are constantly in flux, and economists have long sought reliable means of analysing their dynamic properties. This book aims to provide a succinct and accessible exposition of modern dynamic (or intertemporal) macroeconomics. |

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Page 37

The left-hand side of Equation (2.3) gives the value of the consumption at time t in

terms of time < good added to the time t value of consumption at time t + 1. In

other words, the left-hand side of the equation gives the current or

of ...

The left-hand side of Equation (2.3) gives the value of the consumption at time t in

terms of time < good added to the time t value of consumption at time t + 1. In

other words, the left-hand side of the equation gives the current or

**present value**of ...

Page 73

We repeat that the

proposition says that if the government wishes to make some level of purchases

and decides to borrow now and tax later instead of taxing now, the change of

policy will ...

We repeat that the

**present value**of the tax is the same in both cases. Theproposition says that if the government wishes to make some level of purchases

and decides to borrow now and tax later instead of taxing now, the change of

policy will ...

Page 330

The reserve requirements on the holding of bonds or of private borrowing and

lending are identical; by our usual arbitrage arguments, we get the usual

The reserve requirements on the holding of bonds or of private borrowing and

lending are identical; by our usual arbitrage arguments, we get the usual

**present****value**condition on bonds. Private lending and government bonds must pay the ...### What people are saying - Write a review

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### Contents

Describing the Environment | 5 |

Competitive Equilibrium | 32 |

Introducing a Government | 55 |

Copyright | |

10 other sections not shown

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### Common terms and phrases

45-degree line A-period bonds aggregate savings function amount arbitrage assets autarky Bailey curve bequests bliss point borrowing and lending budget line capital stock Chapter chooses competitive equilibrium Consider an economy consumption allocation consumption point consumption when old consumption when young credit controls crop endowment point equal Equation equilib equilibrium condition equilibrium price example economy exchange rate EXERCISE expected price fiat money Figure given gives government bonds government revenues gross interest rate growth rate hold indifference curve individual h inflation labor lifetime budget constraint market clearing maximize member h money creation money supply output Pareto optimal Pareto superior perfect foresight period person h pm(t present value price of land price path price sequence private borrowing production function Proposition purchase quantity rate of return reserve requirement restrictions result Ricardian equivalence seignorage solve stationary equilibrium stationary monetary equilibrium storage sumption tax-transfer scheme taxes and transfers temporary equilibrium tion utility function