Are government bonds net wealth?

Alfonso Erdman asked a question: Are government bonds net wealth?
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Date created: Thu, Apr 8, 2021 2:50 AM

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🚩 [pdf] are government bonds net wealth?

The assumption that government bonds are perceived as net wealth by the private sector plays an important role in theoretical analyses of monetary and fiscal effects.This assumption appears, explicitly or im- plicitly, in demonstrating real effectsof a shiftin the stock of public debt

🚩 Are government bonds net wealth problem set?

The assumption that government bonds are perceived as net wealth by the private sector is crucial in demonstrating real effects of shifts in the stock of public debt. In particular, the standard effects of "expansionary" fiscal policy on aggregate demand hinge on this assumption. Government bonds will be perceived as net wealth only if their value exceeds the cap- italized value of the implied stream of future tax liabilities. This paper considers the effects on bond values and tax ...

🚩 (pdf) barro r j. are government bonds net wealth?

Are Government Bonds Net Wealth? The Harvard community has made this article openly available. Please share how this access benefits you. Your story matters Citation Barro, Robert J. 1974. Are government bonds net wealth? Journal of Political Economy 82(6): 1095-1117.

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Are Government Bonds Net Wealth? The Harvard community has made this article openly available. Please share how this access benefits you. Your story matters Citation Barro, Robert J. 1974. Are government bonds net wealth? Journal of Political Economy 82(6): 1095-1117. Published Version doi:10.1086/260266

Are Government Bonds Net Wealth? Robert J. Barro University of Chicago The assumption that government bonds are perceived as net wealth by the private sector is crucial in demonstrating real effects of shifts in the stock of public debt. In particular, the standard effects of "expansionary" fiscal policy on aggregate demand hinge on this assumption.

Government bonds will be perceived as net wealth only if their value exceeds the capitalized value of the implied stream of future tax liabilities. This paper considers the effects on bond values and tax capitalization of finite lives, imperfect private capital markets, a government monopoly in the production of bond "liquidity services," and uncertainty about future tax obligations.

Private sector holdings of government bonds are not net wealth. Previous tests of the equivalence proposition estimate Keynesian consumption relationships augmented by alternative measures of government liabilities.

Are Government Bonds Net Wealth? No By Hak Choi (Former) Advisor, Chung-Hua Institution for Economic Research. Correspondence: [email protected] Abstract This paper disproves Ricardian equivalence, and shows that governments bonds are bad investment. The situation in Europe verifies the accusation made by this paper. (JEL: E51, E52)

Are Government Bonds Net Wealth? (Article begins on next page) The Harvard community has made this article openly available. Please share how this access benefits you. Your story matters. Citation Barro, Robert J. 1974. Are government bonds net wealth? Journal of Political Economy 82(6): 1095-1117. Published Version doi:10.1086/260266

Are government bonds net wealth? The assumption that government bonds are perceived as net wealth by the private sector is crucial in demonstrating real...

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