Tag Archive: austerity

Oct 31

UK Think Tank Says Deficit Paranoia Increases Debt

A think tank in the UK has pointed out (as the IMF did in less vocal tones about Europe as a whole) that focusing on reducing government deficits is actually leading to greater debt.  The UK has taken an approach of tax increases and spending cuts to keep debt from going too high.  But the …

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Sep 03

A Basic Macroeconomic Model Tutorial: IS-LM Part 2


This is part 2 of an overview of the IS-LM economic model and how we can use it to understand today’s economy.  Read part 1 here. In my last post, I described the IS (Investment-Saving) part of the IS-LM model.  Remember that the IS-LM model demonstrates the relationship between the interest rate and GDP.  The …

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