How do expectations about future government policies affect current saving and investment?

Sep 13, 2018 ... price level in line with the intertemporal budget constraint (in real terms). In equilibrium, monetary and fiscal policies jointly ensure ... The intertemporal budget constraint refers to the trade-off between current and future consumption that individuals face, given their current income and future ... Apr 28, 2024 ... I talk about how to derive an Intertemporal Budget Constraint from a Flow Budget Constraint. Timestamps: 0:00 - Review of Flow Budget Constraint ... If we partition the inter-temporal budget constraint between the current generation ... to extend the intertemporal budget constraint in equation (6a) into an. If the consumer faces an intertemporal budget constraint. C1 + β C2 = constant, where β = 1/(1 + interest rate) is the period-1 equivalent of a dollar in ... • Intertemporal budget constraint. – implications of rolling over the period-by-period constraint. • Deficits and debt sustainability. – how much government ... The level of consumption will be determined by the intertemporal budget constraint (7). • The population growth rate n does not enter into these expressions. ... Intertemporal Budget Constraint (GIBC). Now let's suppose that the only kind of expenditures the government engages in are transfers, so that Xt simply ... The theoretical model of the intertemporal budget constraint suggests that when the rate of return rises, the quantity of saving may rise, fall, or remain ... More recently, several different researchers have devised and implemented tests of the intertemporal budget constraint in a variety of different contexts.