Game Over: Simulating Unsustainable Fiscal Policy
Published Date
Copyright 2013
ISBN 978-0-226-01844-7
This chapter uses a stochastic general equilibrium model to determine how long it takes for unsustainable fiscal policy to produce game over--the point where the policies can no longer be maintained. When the economy reaches game over, the government is forced to default on its promised payment to the contemporaneous elderly.
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Working Paper
Fiscal sustainability is one of the most pressing policy issues of our time. Yet it remains difficult to quantify....
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