Day 1 Outline Class Begins 1:30 pm – 2:00 pm Lecture on GMEs and World Economy 2:00 pm – 2:20 pm Organization of Daily Brainstorming Groups (Choose leaders.

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Presentation transcript:

Day 1 Outline Class Begins 1:30 pm – 2:00 pm Lecture on GMEs and World Economy 2:00 pm – 2:20 pm Organization of Daily Brainstorming Groups (Choose leaders and today's spokesperson, consider Afternoon Topic, PPT) 2:20 - 2:30 pm 10 Minute Break 2:30 pm – 3:20 pm Group Brainstorming Session on Afternoon Topics 3:20 pm – 3:30 pm 10 Minute Break 3:30 pm – 4:30 pm 8 – 10 minute commentary on selected Afternoon Topic by each group Class Ends

Simple Model of Debt and Deficits

Debt Service =

According to a Forbes article in late 2011, total taxes in Japan were 48 trillion yen total debt service was 21.5 trillion yen. Also, nominal GDP in Japan in 2011 was 468 trillion yen. Plugging these numbers into our formula above b = B/PY = 2.2 τ = 48/468 = Debt Service to Taxes = 21.5/48 = Therefore we can calculate r = 2.01

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