What are the benefits and risks of cross-border financial flows?

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 ... Download scientific diagram | 1: Intertemporal budget constraint and selection of the retirement age a. High-income earner b. Bt+1 = (1 + r) Bt + Gt. Tt. (1) where B is the stock of bonds issued by the government (that is B is the stock of real debt - which is an asset in the hand ... +. +. +. , and so on – are discount factors. 116. We will refer to this last expression as the intertemporal government budget constraint, which is an infinite- ... Oct 26, 2017 ... the government's present value budget constraint (PVBC) holds. • the credit market clears: Sp = B. That is, private savings = quantity of debt ... The intertemporal budget constraint for an infinite-horizon representative agent can be written as. ◜≡H◞t◟-◝ ℙt (C ) = Bt + ℙt. (1). where Bt is the ... intertemporal budget constraint as those which we present to satisfy both the intertemporal budget constraint and fiscal limits. Bohn (2007) argued that ... ▷ Inflation as a tax. ▷ Seigniorage. ▷ Intertemporal budget constraint. ▷ Intertemporal discount. ▷ Public Deficit/surplus. If, for example, the current stock of debt is zero, then the intertemporal budget constraint says that the discounted present value of future primary surpluses ... The intertemporal budget constraint is based on the assumption that income and interest rates are ... A. determined by the consumer. B. determined by the gov't