An overlapping generations version of krugman’s world’s smallest macroeconomic model and fiscal deficit

HIGHLIGHTS

• What: The aim of this paper is to improve Krugman`s simple model to make it a bit more general and to prove that budget deficits not only help economies recover from recessions, but are essential for maintaining full employment under constant prices or inflation in a growing economy.
• Who: Yasuhito Tanaka from the a Faculty of Economics, Doshisha University, Kyoto, Japan have published the research: Journal of Economic Analysis 2024 3 (4) 101-115, in the Journal: (JOURNAL)
• How: As of this paper shows the larger (smaller) the propensity to consume is . . .
  

   

  

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