Makro am Mikro 11 – Fragen ans fertige Modell

·42 min·4 clips

Bachmann analyzes a temporary fiscal stimulus, like wartime spending, to see how it expands output through demand and supply effects.

The episode begins with Rüdiger Bachmann introducing the concept of general equilibrium in macroeconomics, comparing it to communicating tubes where all markets are interconnected. He recaps the model developed in previous episodes, emphasizing it as an analytical tool rather than a normative ideal. Bachmann outlines the three markets in the model: the financial market for savings and investment, the labor market for labor supply and demand, and the output market for aggregate demand and supply. He describes the three types of actors: private households maximizing lifetime utility under budget constraints, firms maximizing profits, and a state with exogenous spending and financing profiles. The model is presented as an algorithm that takes exogenous variables as input to explain endogenous variables like employment, consumption, investment, real wages, and real interest rates. Bachmann notes key omissions, such as money, inflation, and unemployment, labeling it a complete real intertemporal model. He lists five questions to apply to the model, starting with a temporary increase in government spending, akin to a fiscal stimulus during war. The analysis shows first-round effects: increased aggregate demand and, due to higher future taxes, increased labor supply through an impoverishment effect. This leads to expanded output, lower real wages, and potentially higher real interest rates, causing crowding-out of private consumption and investment. Bachmann connects this to neoclassical and conservative skepticism about fiscal stimulus. He contrasts this with permanent spending increases, which may not cause crowding-out, and hints at future topics like productivity shocks and expectations. The episode concludes by noting the model's limitation in addressing unemployment, relevant for stimulus in recessions.

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