Discuss the impact of expected inflation on the intertemporal budget line. How does uncertainty about future income affect the intertemporal budget constraint and consumption decisions?

The intertemporal budget constraint? Below are 3 quotes from our book. The slope of the budget constraint is determined by the relative price of the two goods, ... how is the deficit financed? • bond sales to the private sector or the central bank (money creation). • government inter-temporal ... If we partition the inter-temporal budget constraint between the current generation ... to extend the intertemporal budget constraint in equation (6a) into an. ... intertemporal budget constraint considered in a Bewley economy (with a single asset). We also show parameterizations of our model in which we can obtain a ... Keywords: current account deficits, sustainability, intertemporal budget constraint ... sustainability of the intertemporal budget constraint: – when there is no ... Sep 14, 2020 ... That theory is built around the “intertemporal budget constraint,” which essentially states that in the long run, and in present values, the ... More recently, several different researchers have devised and implemented tests of the intertemporal budget constraint in a variety of different contexts. Sep 13, 2018 ... price level in line with the intertemporal budget constraint (in real terms). In equilibrium, monetary and fiscal policies jointly ensure ... Indeed, given the accounting equation (9.6), the consumption plan of the household will satisfy the intertemporal budget constraint (9.20) if and only if it ... Try adjusting the two interest rates (for borrowing and saving). Note that each affects one portion of the budget constraint: the rate for borrowing affects the ...