term 2 lecture 8 - government budget, seignorage and inflation Flashcards
what is the central bank budget identidy>
what is the fiscal branch of govt budget identity>
what is the consolidated budget identidy and how is it derived>
what is the consolidated budget identidy in terms of govt debt held by the public?
what is the real budget identidy and how is it derived?
what is the relationship between ex post and ex ante real interest rates?
how can the real budget identidy be written to include ex ante real rates?
what does the real budget identidy with ex ante real rates imply?
explain the Sargent and Wallace (1981)’s Unpleasant Monetarist
Arithmetic model?
what did Bresciani-Turroni (1937) and Cagan (1956) suggest that episodes of
high ináation and hyperináation are caused by?
what was the equation for the real money demand function in Cagan’s 1956 money demand function?
what was Cagan’s real money demand formula?
what is the real money balance formula in the steady state economy analysis?
what is the real seigniorage formula in the steady state economy analysis?
what is the inflation tax revenue formula and how can it be shown graphically?
what is the formula for the real seigniorage in the steady state economy using cagan (1956) money demand function?
what is the maximum seigniorage in the steady state economy>
what does the seignorarage revenue look like graphically as a function of money growth rate?
what is the peak of the inflation tax laffer curve correspond to ?
it corresponds to 1/b = inflation
in the cagan 1956 model, what is the revenue maximising inflation tax rate equal to?
what does cagan 1956 estimate b to be?
when is seigniorage unsustainable and what occurs?
what are the caveats of the cagan 1956 model?
how do the laffer curve vary graphically over different time periods?
