Explain how current government borrowing might lead to higher future taxes or reduced government services.

present value of domestic production. The intertemporal budget constraint delimits the feasible choices of the economy. To describe the circumstances in which ... Aug 26, 2009 ... intertemporal budget constraint and thus determine the dynamics of the debt ratio. ... data are constructed using the government intertemporal ... The government's intertemporal budget constraint requires that the present value of current and future taxes must be sufficient to cover the present value of ... The intertemporal budget constraint of the central bank in equation (5) becomes: PV (d) ≤ at pt(r + π + δ). − vt + ctL π + g r − g. (6) under the following ... ▷ Inflation as a tax. ▷ Seigniorage. ▷ Intertemporal budget constraint. ▷ Intertemporal discount. ▷ Public Deficit/surplus. in part due to interviewing methods that check the inter-temporal consistency of responses, ... intertemporal budget constraint of households and asked ... +. +. +. , and so on – are discount factors. 116. We will refer to this last expression as the intertemporal government budget constraint, which is an infinite- ... ... intertemporal budget constraint of the consolidated government sector (central bank and governments). This is the consequence of the constraint being a ... The consumer's utility maximization is constrained by several budget equations. Primary is the individual's intertemporal budget constraint,. 3 This ... Dec 7, 2015 ... Another central concept is the intertemporal budget constraint, according to which the present value of current and future government ...