Crowding In vs Crowding Out

28/11/2024 13 min Temporada 1 Episodio 2
Crowding In vs Crowding Out

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Episode Synopsis

Dive into the fascinating world of fiscal policy with our latest episode, where we explore the concepts of crowding in and crowding out—two key ideas that shape debates on government spending. In this episode, we break down:• What crowding out is, how increased government borrowing can lead to higher interest rates, and the potential impact on private investment.• The flip side: crowding in, where government spending stimulates economic activity and encourages private sector growth.• Real-world examples, from infrastructure projects to monetary policy interactions, to bring these theories to life.• Key evaluation points for exams, including factors like economic conditions, elasticity of supply