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Macroeconomic model reference

Ricardian Equivalence Model

The proposition that a debt-financed tax cut has no effect on consumption because rational, forward-looking agents save the windfall to pay future tax liabilities.

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Concepts

AD-ASBusiness cyclesEconomic growthInterest rates

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Real GDPgdp.realHeadline CPIprices.cpi.headlineUnemployment ratelabor.unemployment.ratePolicy ratemoney.policy_rate

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Monetary policyFiscal policy

Nearby models

IS-LMAD-ASTaylor rule