Talk:Ricardian

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Latest comment: 6 years ago by Econterms
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In economics, the adjective "Ricardian" is used to describe arguments or evidence that shows changes in government borrowing or tax rates have no deep, substantial, long term effect because the people in the public understand it will later have to be paid back. The term "Ricardian equivalence", for example, is drawn from models in which the population doesn't change its behavior when there is an overall change in tax levels because the long-term financial obligations of the public/government have not changed. In a model where there is Ricardian equivalence, there WOULD be response by the public to a change in government expenditure, because this DOES change the government's fiscal position in a long-term sense. It might be good to squeeze this meaning into the entry for "Ricardian" here, someday. -- econterms (talk) 20:09, 3 March 2018 (UTC)Reply