ECON-UA 1 Lecture 24: 24
8 Feb 2017
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24 long run- de cits adds to national debt. 3 sources of loans for us government- us public + foreign public + foreign governments ( + in return for us gov. Bond) us treasury- collect taxes and pay transfers ( purchases) *g > t de cit = g-t = us government borrowing. National debt | sum of all past federal government borrowing not yet paid back sum of all past de cits. #1 o cial us national debt . 8 trillion ,000 per person (in ated gure) about . 5 trillions owed to us gov itself leaves . 3 trillion = national debt held by public ,000 per person. #2 will have to be paid back one day bond rolls over by maturity of bond interest paid. #3 there is some maximum dollar value of debt we should never exceed what matters is the debt ratio: (nominal)
