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23 votes
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Is there any way retirement systems can cope with declining population?

There is no magic trick that the government can use to solve this issue. Government pensions can be kept funded by: Increasing taxes Reducing benefits Raising the retirement age Increasing population ...
Leeh Mizrahi's user avatar
8 votes

Is there any way retirement systems can cope with declining population?

Is there any way government pension systems can be reformed to in a way they are proofed against changes in the ratio of economically active and dependent people? I think a very basic exmination from ...
Nobody's user avatar
  • 183
6 votes

Are quantitative easing and helicopter cash really different tactics? And how does QE relate to Modern Monetary Theory?

What is QE: QE is simply an asset purchase by central bank. As explained by Fed St. Louis QE is defined as: large-scale asset purchases—in the hundreds of billions of dollars range—of, for example, ...
1muflon1's user avatar
  • 57.2k
4 votes
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Does immigration help to sustain welfare in rich European countries?

Here is a chart from the OECD, which shows the net fiscal impact of migrants on their recipient country (i.e. by how much to they contribute or withdraw from the welfare state, albeit excluding in-...
Ubiquitous's user avatar
4 votes
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Why did the Greek bailouts "fail" whereas the Portuguese bailouts succeeded?

Greece had more debt, less growth and higher budget deficits than Portugal throughout the crisis. As a result, the Greek bailout should have been even bigger, but this was politically untenable, ...
M3RS's user avatar
  • 1,087
4 votes
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When the Central Bank sells a bond, where does the money go ultimately?

Firstly, the central bank doesn't issue bonds. The treasury (in the executive government) does, as a way to finance government expenditure, and make real investments in the economy. In modern ...
ahorn's user avatar
  • 1,230
4 votes

When the Central Bank sells a bond, where does the money go ultimately?

Federal reserve, has no limit on how much money they can print. Thus, when central banks buy bonds , new money flows into the system. Also, when federal reserve sells the bond , the money is taken ...
nsivakr's user avatar
  • 177
4 votes

Why doesn't government work more like a company when it comes to taxes?

Getting the facts straight First before addressing the question, lets get the facts straight as arguing based on incorrect premises is not good and in this case this is also relevant to the answer. ...
1muflon1's user avatar
  • 57.2k
3 votes
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on the FRED website where do i find definitions of the variables they give charts of?

The bottom of these indicator/series pages on FRED always lists the source. In this case, it's the OECD. If you dig around a bit on their site, and find where they host the data, there is always some ...
anguyen1210's user avatar
3 votes
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Where do public savings go?

Most governments (outside of typically oil-producing nations that have sovereign wealth funds) are net debtors, so public deficits show up as increases in government debt outstanding, and public ...
dismalscience's user avatar
3 votes
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1929 stock market crash and unemployment rate

One caveat to the author you refer to, Thomas Sowell is a staunchly conservative economist, so most arguments you hear from him will stick to the Econ 101 wisdom that government intervention is ...
Kitsune Cavalry's user avatar
  • 6,648
3 votes
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Causes of recent UK Deficit

The chart you are looking at is off by a year: it should have shown about £10 billion in 2007 and almost £100 billion in 2009. See the ONS figures for the "Public sector current budget deficit, ...
Henry's user avatar
  • 4,765
3 votes
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How much does a public sector pay rise actually cost the UK government?

Unison (2014) - Net cost The Public sector trade union did an analysis of lifting the cap in 2014. The report is here. Unlike the IFS analysis presented above, Unison estimates the net cost of an ...
luchonacho's user avatar
  • 8,591
3 votes
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Is there a consensus in economics about public housing?

Found a couple on the internet which I didn't read. If you think they're of no use, let me know and I'll take down the answer. Does public housing reduce housing cost burden among low-income families ...
solow supremacy's user avatar
3 votes

Net effect of govt spending and tax cuts

The answer would depend on a lot of factors, such as what is the government money spent on, what is the tax regime etc. For starters, let us look at what would happen in different time scales. We can ...
Ishan Kashyap Hazarika's user avatar
2 votes

How is reducing government expenditure supposed to reduce aggregate demand?

Aggregate demand is the total domestic demand for goods and services in an economy. Cutting government spending could reduce aggregate two ways. Direct. Government demand is obviously lower, and is a ...
Brian Romanchuk's user avatar
2 votes

Why can we finance government deficit by having a trade deficit?

To answer the question, I feel it is needed to correct one misunderstanding first: trade deficit does not mean the government buys imported products more than it sells the exported products. Rather, ...
HarmlessEcon's user avatar
2 votes

Can a spending freeze solve the problem of the Italian enormous government debt?

This question is somewhat political, and runs into the area of “opinion-based,” which this site has to avoid. I am only going to attempt to discuss part of it. There’s some long-running economic ...
Brian Romanchuk's user avatar
2 votes

How do government purchases crowd out the private sector?

Just to add some more besides the answers above: Short answer: by influencing interest rate. Explanation: In the post Keynesian literature what has come to be appreciated a lot is that government ...
Dayne's user avatar
  • 1,745
2 votes

Military expenditure over time

This is a "there can be no adequate answer" answer, for periods prior to "imperialism as a world system." (Personally, I'd pick 1880s here, ymmv.) Gross domestic product as a conceptual tool ...
Samuel Russell's user avatar
2 votes

Does immigration help to sustain welfare in rich European countries?

The typical analyses which tend to pretty unambiguously show net positive impact of immigration on the economy (despite the likelihood that some specific labour market segments may experience lower ...
nathanwww's user avatar
  • 626
2 votes

Effect of lower Government spending on Loanable Funds Market

If the opposite were true and the government proposes spending $1 trillion on infrastructure spending we will see a shift outward of the demand curve and rates will tick upward to a new equilibrium ...
Ian Brigmann's user avatar
2 votes

Why doesn't government work more like a company when it comes to taxes?

Somewhat straying from the historical question, but I think it's important to discuss the premise of the question: So, overall, the government doesn't have any real incentive to operate in a cost-...
C. Kang's user avatar
  • 166
2 votes

Are quantitative easing and helicopter cash really different tactics? And how does QE relate to Modern Monetary Theory?

I just want to discuss this from the MMT perspective, since that was a sub-part of the question. “Helicopter money“ is the alleged distribution of money by central banks to the public. This is ...
Brian Romanchuk's user avatar
2 votes
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How did the US Government fund its deficit when the Federal Reserve was pruning its balance sheet in 2018-1019?

From debt bought by households, firms and foreign governments, as government always did. This question is based on fundamentally flawed premise that: The primary way for Governments to fund their ...
1muflon1's user avatar
  • 57.2k
2 votes
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Research on the effect of government size on prosperity?

In Does Government Size Affect Per-Capita Income Growth? A Hierarchical Meta-Regression Analysis, Churchill, Ugur and Yew write Since the late 1970s, the received wisdom has been that government size ...
Giskard's user avatar
  • 29.4k
2 votes
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Why agricultural subsidies were targeted in 1991 Indian Economic Liberalization

I don't understand how is this even a reform, because as per this answer and the Wikipedia page for agricultural subsidies, developed countries are surely spending much more than India on per capita ...
1muflon1's user avatar
  • 57.2k
2 votes

Net effect of govt spending and tax cuts

So would it result in a net zero change to the economy? Or would there be other effects which come into play? No, With non distortionary tax there would be almost no change to the economy, but ...
1muflon1's user avatar
  • 57.2k
1 vote
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Empirically checking efficiency and equity

Several things: It is not clear that labor productivity as a share of GDP tracks allocative efficiency. For example, it could rise simply because the returns to capital (capital's share of GDP) are ...
heh's user avatar
  • 1,806

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