What does Ricardian Equivalence mean?
A hypothesis stating that financing spending by debt or taxes has no effect on aggregate demand.
The theory suggests that financing government spending out of debt is equivalent to financing it out of taxes.
Ricardian Equivalence in German, French, Spanish and Italian
GermanRicardianische Äquivalenz
Theorie, dass Staatsschulden heute künftigen Steuern entsprechen und Konsum nicht erhöhen.
FrenchÉquivalence ricardienne
Théorie affirmant que la dette publique ne stimule pas la demande car les gens épargnent en vue d'impôts futurs.
SpanishEquivalencia ricardiana
Hipótesis que dice que el déficit público no afecta a la demanda agregada.
ItalianEquivalenza ricardiana
Teoria secondo cui il finanziamento in deficit non stimola i consumi.
Common phrases with Ricardian Equivalence
- economic hypothesis ricardian equivalence
- no effect on aggregate demand ricardian equivalence
- debt or taxes ricardian equivalence