Microfoundations


 * Milton Friedman's permanent-income hypothesis**
 * Below I attached an article that talks about the instability of the recent Initial Claims for Unemployment Insurance. If you read further down in the article, they mention Milton Friedman's permanent income hypothesis in the following context:
 * The rich are much more likely, in other words, to fit Milton Friedman's "Permanent Income Hypothesis" than are the unemployed, since the rich do not face liquidity constraints. Also, if you remember your Friedman, velocity of money counts, and it counts a great deal. P * Q = M * V. Price times quantity in the aggregate is nominal GDP, and it is equal to the amount of money in circulation times how quickly it changes hands. Money in the hands of the unemployed has a much higher velocity than money in the hands of a multi millionaire
 * This passage is describing the importance of unemployment insurance, because the unemployed will spend the money faster than the employed, which according to the velocity of money equation, will stimulate the economy.
 * Link to full article: http://www.zacks.com/stock/news/51715/Initial+Claims+Fall+Less+Than+Expected?adid=

Government Budget

 * http://www.wheredidmytaxdollarsgo.com