Income and output

Bubble Saving (6/17/2010)

The US has been spending more than it earns and has to borrow from abroad to fund its real investment.

Keywords: capital depreciation allowances, debt, disposable income, dissaving, foreign capital, investment, net worth, Saving, trade surplus

Circular Flow (11/2/2011)

The circular flow diagram captures the big picture of how different sectors of an economy are connected to one another by flows of money and goods.

Keywords: circular flow, consumption, injection, investment, leakage, saving

Circular Flow (transcript) (11/18/2010)

The circular flow diagram captures the big picture of how different sectors of an economy are connected to one another by flows of money and goods.

Keywords: circular flow, closed economy, consumption, exports, factor markets, financial markets, firms, foreign economies, government purchases, households, imports, income, injection, investment, leakage, net taxes, open economy, product markets, saving

Crowding-out Effect (11/2/2011)

Government deficit financing could crowd out private investment.

Keywords: budget deficit, crowding out, investment, saving

Crowding-out Effect (transcript) (11/18/2010)

Budget deficit crowds out investment.

Keywords: budget deficit, budget surplus, investment, saving, taxes

Deficit and Debt (11/2/2011)

Chronic budget deficits could lead to a ballooning debt/GDP ratio.

Keywords: debt, deficit, GDP, inflation, interest rate, solvency

Deficit and Debt (transcript) (11/18/2010)

Debt/income ratio will rise as long as the deficit exceeds debt times the income growth rate.

Keywords: debt, debt interest rate, debt trap, debt/income ratio, deficit financing, income growth rate, solvency condition

Domestic Content (5/13/2010)

Economic stimulus might end up stimulating foreign economies more than the domestic economy when the US is so dependent on imports.

Keywords: bullet train, Buy American, credit crunch, domestic content, expenditure multiplier, fiscal policy, recession, Stimulus, wind farm

Exponential Growth (3/3/2014)

Exponential growth is unsustainable.

Keywords: exponential growth, population

Flows and Stocks (6/17/2010)

The excess of inflows over outflows adds to the stock if flows are not instantly perishable.

Keywords: aging, capital, debt, deficit, depreciation, Flow, infrastructure, investment, population, saving, stock, vintage

Front Loading (5/12/2010)

Cash for clunkers and home-buyer tax credit provided huge subsidies for each incremental sale but failed to sustain the car and housing markets.

Keywords: cash for clunkers, channel stuffing, Economic stimulus, expenditure multiplier, front loading, home-buyer tax credit, incentive, incremental sale, pump priming, subprime loan, subsidies

Household Formation (8/12/2011)

Consumption in the economy is inversely affected by household size.

Keywords: multiplier effect, paradox of thrift, scale economy

Inflation Illusion (2/4/2010)

Price inflation creates strong illusion of monetary gains that hides the reality of more mundane performance.

Keywords: Avatar, box office, Dow, Gone with the Wind, inflation, movies, Star Wars, stock market, Titanic

Injections and Leakages - Planned vs Realized (1/3/2013)

An open economy allows for more varied interplays between planned vs actual leakages and injections among countries.

Keywords: actual injections, actual leakages, borrowing, capital flow, debt, lending, paradox of thrift, planned injections, planned leakages, realized injections, realized leakages, trade deficit, trade surplus

Jobless Safety Net (5/13/2010)

Jobless benefits cushion the fall of disposable income during economic recessions.

Keywords: Automatic stabilizer, budget deficit, food stamp, income tax credit, income tax rate, jobless benefits, progressive income tax, recession, unemployment benefits

Re-counting GDP (9/9/2013)

Some long-lived intangible assets will be counted as capital investment rather than one-time expenses in US GDP.

Keywords: consumption, depreciation, GDP, intangible assets, intellectual property, investment

Savers, Suckers? (5/12/2010)

Savers are collateral damage in the Fed’s attempt to resuscitate a comatose economy during the Great Recession.

Keywords: bailout, borrowers, CD, certificates of deposit, FDIC, Fed funds rates, housing bubble, interest rate, money market funds, mortgage, quantitative easing, recession, savers, Saving, spenders, the Fed, Treasury bonds, yield

Spending Multiplier (11/2/2011)

Spending multiplier in the absence of crowding-out effect.

Keywords: income multiplier, marginal propensity to save, recession, spending multiplier, stimulus

Spending Multiplier (transcript) (11/18/2010)

Total expenditure could be a multiple of the injected stimulus if most of the additional income is spent.

Keywords: expenditure multiplier, flow, income multiplier, investment, leakage, marginal propensity of consume, marginal propensity to save, saving, stimulus, stock

Trade Deficits (11/2/2011)

Trade deficits serve to fill domestic private saving gap and government budget gap.

Keywords: budget gap, net export, saving gap, trade deficits