' Before running this program you should have run REFORM2 (reform2_steady_state.txt)

' to create a workfile and a steady state solution / baseline scenario (Scenario _0)!



' Copy-paste all this text to EViews and run it as a program



' This program will generate three scenarios to study credit crunches under under full-reserve banking.



'Scenario _5 = Money creation through government spending

'Scenario _6 = Money creation through tax reduction

'Scenario _7 = Money creation through citizen's dividend



smpl @all



' Store original values of shocked variables

genr lambda_c_0 = lambda_c

genr lambda10_0 = lambda10

genr lambda20_0 = lambda20

genr sigma0_0 = sigma0







'***SCENARIO 5 (increased liquidity preference / cash)***





' Increase the liquidity preference (cash)

' Value chosen so that FRB requirement violated in the short run (BLR falls below 1)

smpl 0015 @last

lambda_c = 0.132



smpl @all



' Select the alternative Scenario

reform_mod.scenario(n, a="_5") "Scenario 5"



' Set simulation sample

smpl 0003 @last



' Solve the model for the current sample

reform_mod.solve(i=p)



' Store new values of shocked variables

genr lambda_c_5 = lambda_c



' Return shocked variables to their original values

lambda_c = lambda_c_0



' end of scenario





' Create charts for simulated variables



smpl 0001 0050



' GDP and inflation

graph fig_y_k_5 y_k_5

fig_y_k_5.draw(shade, bottom) 0014 0035

fig_y_k_5.datelabel format(yy)

fig_y_k_5.addtext(b) Period

fig_y_k_5.addtext(0.05, 0.1, font(b)) "Old" steady state

fig_y_k_5.addtext(2, 0.1, font(b)) Transition

fig_y_k_5.addtext(3.6, 0.1, font(b)) "New" steady state

fig_y_k_5.addtext(t,just(c),just(c), font(14)) Real GDP



graph fig_pi_5 pi_5

fig_pi_5.axis(left) units(p)

fig_pi_5.addtext(-0.2, -0.3) %

fig_pi_5.draw(shade, bottom) 0014 0035

fig_pi_5.datelabel format(yy)

fig_pi_5.addtext(b) Period

fig_pi_5.addtext(0.05, 0.1, font(b)) "Old" steady state

fig_pi_5.addtext(2, 0.1, font(b)) Transition

fig_pi_5.addtext(3.6, 0.1, font(b)) "New" steady state

fig_pi_5.addtext(t,just(c),just(c), font(14)) Inflation rate



' Monetary and credit aggregates

graph fig_h_hh_5 h_hh_5

fig_h_hh_5.draw(shade, bottom) 0014 0035

fig_h_hh_5.datelabel format(yy)

fig_h_hh_5.addtext(b) Period

fig_h_hh_5.addtext(0.05, 2.8, font(b)) "Old" steady state

fig_h_hh_5.addtext(2, 2.8, font(b)) Transition

fig_h_hh_5.addtext(3.6, 2.8, font(b)) "New" steady state

fig_h_hh_5.addtext(t,just(c),just(c), font(14)) Cash



graph fig_m1_h_5 m1_h_5

fig_m1_h_5.draw(shade, bottom) 0014 0035

fig_m1_h_5.datelabel format(yy)

fig_m1_h_5.addtext(b) Period

fig_m1_h_5.addtext(0.05, 0.1, font(b)) "Old" steady state

fig_m1_h_5.addtext(2, 0.1, font(b)) Transition

fig_m1_h_5.addtext(3.6, 0.1, font(b)) "New" steady state

fig_m1_h_5.addtext(t,just(c),just(c), font(14)) Demand deposits



graph fig_m2_h_5 m2_h_5

fig_m2_h_5.draw(shade, bottom) 0014 0035

fig_m2_h_5.datelabel format(yy)

fig_m2_h_5.addtext(b) Period

fig_m2_h_5.addtext(0.05, 0.1, font(b)) "Old" steady state

fig_m2_h_5.addtext(2, 0.1, font(b)) Transition

fig_m2_h_5.addtext(3.6, 0.1, font(b)) "New" steady state

fig_m2_h_5.addtext(t,just(c),just(c), font(14)) Time deposits



graph fig_l_s_5 l_s_5

fig_l_s_5.draw(shade, bottom) 0014 0035

fig_l_s_5.datelabel format(yy)

fig_l_s_5.addtext(b) Period

fig_l_s_5.addtext(0.05, 0.1, font(b)) "Old" steady state

fig_l_s_5.addtext(2, 0.1, font(b)) Transition

fig_l_s_5.addtext(3.6, 0.1, font(b)) "New" steady state

fig_l_s_5.addtext(t,just(c),just(c), font(14)) Loans



' Bank liquidity and deposit and loan rates

graph fig_blr_5 blr_5 blr_bot blr_top

fig_blr_5.options linepat

fig_blr_5.setelem(2) lpat(dash1)

fig_blr_5.setelem(3) lpat(dash1)

fig_blr_5.draw(shade, bottom) 0014 0035

fig_blr_5.datelabel format(yy)

fig_blr_5.addtext(b) Period

fig_blr_5.addtext(0.05, 0.1, font(b)) "Old" steady state

fig_blr_5.addtext(2, 0.1, font(b)) Transition

fig_blr_5.addtext(3.6, 0.1, font(b)) "New" steady state

fig_blr_5.addtext(t,just(c),just(c), font(14)) Bank liquidity ratio



graph fig_r_m_5 r_m_5

fig_r_m_5.axis(left) units(p)

fig_r_m_5.addtext(-0.3, -0.3) %

fig_r_m_5.draw(shade, bottom) 0014 0035

fig_r_m_5.datelabel format(yy)

fig_r_m_5.addtext(b) Period

fig_r_m_5.addtext(0.05, 1.5, font(b)) "Old" steady state

fig_r_m_5.addtext(2, 1.5, font(b)) Transition

fig_r_m_5.addtext(3.6, 1.5, font(b)) "New" steady state

fig_r_m_5.addtext(t,just(c),just(c), font(14)) Interest rate on time deposits



graph fig_r_l_5 r_l_5

fig_r_l_5.axis(left) units(p)

fig_r_l_5.addtext(-0.3, -0.3) %

fig_r_l_5.draw(shade, bottom) 0014 0035

fig_r_l_5.datelabel format(yy)

fig_r_l_5.addtext(b) Period

fig_r_l_5.addtext(0.05, 0.1, font(b)) "Old" steady state

fig_r_l_5.addtext(2, 0.1, font(b)) Transition

fig_r_l_5.addtext(3.6, 0.1, font(b)) "New" steady state

fig_r_l_5.addtext(t,just(c),just(c), font(14)) Interest rate on loans



' Bills held by hh and psbr

graph fig_b_hh_5 b_hh_5

fig_b_hh_5.draw(shade, bottom) 0014 0035

fig_b_hh_5.datelabel format(yy)

fig_b_hh_5.addtext(b) Period

fig_b_hh_5.addtext(0.05, 2.8, font(b)) "Old" steady state

fig_b_hh_5.addtext(2, 2.8, font(b)) Transition

fig_b_hh_5.addtext(3.6, 2.8, font(b)) "New" steady state

fig_b_hh_5.addtext(t,just(c),just(c), font(14)) Government bills held by households



graph fig_r_b_5 r_b_5

fig_r_b_5.axis(left) units(p)

fig_r_b_5.addtext(-0.25, -0.3) %

fig_r_b_5.draw(shade, bottom) 0014 0035

fig_r_b_5.datelabel format(yy)

fig_r_b_5.addtext(b) Period

fig_r_b_5.addtext(0.05, 2.8, font(b)) "Old" steady state

fig_r_b_5.addtext(2, 2.8, font(b)) Transition

fig_r_b_5.addtext(3.6, 2.8, font(b)) "New" steady state

fig_r_b_5.addtext(t,just(c),just(c), font(14)) Interest rate on government bills (base rate)



graph fig_psbr_5 psbr_5

fig_psbr_5.draw(shade, bottom) 0014 0035

fig_psbr_5.datelabel format(yy)

fig_psbr_5.addtext(b) Period

fig_psbr_5.addtext(0.05, 0.1, font(b)) "Old" steady state

fig_psbr_5.addtext(2, 0.1, font(b)) Transition

fig_psbr_5.addtext(3.6, 0.1, font(b)) "New" steady state

fig_psbr_5.addtext(t,just(c),just(c), font(14)) Government budget deficit



' Private wealth

graph fig_v_5 v_5

fig_v_5.draw(shade, bottom) 0014 0035

fig_v_5.datelabel format(yy)

fig_v_5.addtext(b) Period

fig_v_5.addtext(0.05, 0.1, font(b)) "Old" steady state

fig_v_5.addtext(2, 0.1, font(b)) Transition

fig_v_5.addtext(3.6, 0.1, font(b)) "New" steady state

fig_v_5.addtext(t,just(c),just(c), font(14)) Wealth of households



' Public debt

graph fig_gd_per_y_5 gd_5/y_5 gd_net_5/y_5

fig_gd_per_y_5.name(1) Gross government debt

fig_gd_per_y_5.name(2) Consolidated government debt

fig_gd_per_y_5.options linepat

fig_gd_per_y_5.setelem(2) lpat(dash2)

fig_gd_per_y_5.axis(left) units(p)

fig_gd_per_y_5.addtext(-0.4, -0.3) % of GDP

fig_gd_per_y_5.draw(shade, bottom) 0014 0035

fig_gd_per_y_5.datelabel format(yy)

fig_gd_per_y_5.addtext(b) Period

fig_gd_per_y_5.addtext(0.05, 0.1, font(b)) "Old" steady state

fig_gd_per_y_5.addtext(2, 0.1, font(b)) Transition

fig_gd_per_y_5.addtext(3.6, 0.1, font(b)) "New" steady state

fig_gd_per_y_5.addtext(t,just(c),just(c), font(14)) Government debt







'***SCENARIO 6 (increased liquidity preference / more demand deposits, less time deposits)***





' Increase the demand for demand deposits and decrease for time deposits

' Value chosen so that FRB requirement violated in the short run (BLR falls below 1)

smpl 0015 @last

lambda10 = 0.23

lambda20 = 0.31

smpl @all



' Select the alternative Scenario

reform_mod.scenario(n, a="_6") "Scenario 6"



' Set simulation sample

smpl 0003 @last



' Solve the model for the current sample

reform_mod.solve(i=p)



' Store new values of shocked variables

genr lambda10_6 = lambda10

genr lambda20_6 = lambda20



' Return shocked variables to their original valuesiginal values

lambda10 = lambda10_0

lambda20 = lambda20_0



' end of scenario





' Create charts for simulated variables



smpl 0001 0050



' GDP and inflation

graph fig_y_k_6 y_k_6

fig_y_k_6.draw(shade, bottom) 0014 0035

fig_y_k_6.datelabel format(yy)

fig_y_k_6.addtext(b) Period

fig_y_k_6.addtext(0.05, 0.1, font(b)) "Old" steady state

fig_y_k_6.addtext(2, 0.1, font(b)) Transition

fig_y_k_6.addtext(3.6, 0.1, font(b)) "New" steady state

fig_y_k_6.addtext(t,just(c),just(c), font(14)) Real GDP



graph fig_pi_6 pi_6

fig_pi_6.axis(left) units(p)

fig_pi_6.addtext(-0.2, -0.3) %

fig_pi_6.draw(shade, bottom) 0014 0035

fig_pi_6.datelabel format(yy)

fig_pi_6.addtext(b) Period

fig_pi_6.addtext(0.05, 0.1, font(b)) "Old" steady state

fig_pi_6.addtext(2, 0.1, font(b)) Transition

fig_pi_6.addtext(3.6, 0.1, font(b)) "New" steady state

fig_pi_6.addtext(t,just(c),just(c), font(14)) Inflation rate



' Monetary and credit aggregates

graph fig_h_hh_6 h_hh_6

fig_h_hh_6.draw(shade, bottom) 0014 0035

fig_h_hh_6.datelabel format(yy)

fig_h_hh_6.addtext(b) Period

fig_h_hh_6.addtext(0.05, 2.8, font(b)) "Old" steady state

fig_h_hh_6.addtext(2, 2.8, font(b)) Transition

fig_h_hh_6.addtext(3.6, 2.8, font(b)) "New" steady state

fig_h_hh_6.addtext(t,just(c),just(c), font(14)) Cash



graph fig_m1_h_6 m1_h_6

fig_m1_h_6.draw(shade, bottom) 0014 0035

fig_m1_h_6.datelabel format(yy)

fig_m1_h_6.addtext(b) Period

fig_m1_h_6.addtext(0.05, 0.1, font(b)) "Old" steady state

fig_m1_h_6.addtext(2, 0.1, font(b)) Transition

fig_m1_h_6.addtext(3.6, 0.1, font(b)) "New" steady state

fig_m1_h_6.addtext(t,just(c),just(c), font(14)) Demand deposits



graph fig_m2_h_6 m2_h_6

fig_m2_h_6.draw(shade, bottom) 0014 0035

fig_m2_h_6.datelabel format(yy)

fig_m2_h_6.addtext(b) Period

fig_m2_h_6.addtext(0.05, 0.1, font(b)) "Old" steady state

fig_m2_h_6.addtext(2, 0.1, font(b)) Transition

fig_m2_h_6.addtext(3.6, 0.1, font(b)) "New" steady state

fig_m2_h_6.addtext(t,just(c),just(c), font(14)) Time deposits



graph fig_l_s_6 l_s_6

fig_l_s_6.draw(shade, bottom) 0014 0035

fig_l_s_6.datelabel format(yy)

fig_l_s_6.addtext(b) Period

fig_l_s_6.addtext(0.05, 0.1, font(b)) "Old" steady state

fig_l_s_6.addtext(2, 0.1, font(b)) Transition

fig_l_s_6.addtext(3.6, 0.1, font(b)) "New" steady state

fig_l_s_6.addtext(t,just(c),just(c), font(14)) Loans



' Bank liquidity and deposit and loan rates

graph fig_blr_6 blr_6 blr_bot blr_top

fig_blr_6.options linepat

fig_blr_6.setelem(2) lpat(dash1)

fig_blr_6.setelem(3) lpat(dash1)

fig_blr_6.draw(shade, bottom) 0014 0035

fig_blr_6.datelabel format(yy)

fig_blr_6.addtext(b) Period

fig_blr_6.addtext(0.05, 0.1, font(b)) "Old" steady state

fig_blr_6.addtext(2, 0.1, font(b)) Transition

fig_blr_6.addtext(3.6, 0.1, font(b)) "New" steady state

fig_blr_6.addtext(t,just(c),just(c), font(14)) Bank liquidity ratio



graph fig_r_m_6 r_m_6

fig_r_m_6.axis(left) units(p)

fig_r_m_6.addtext(-0.3, -0.3) %

fig_r_m_6.draw(shade, bottom) 0014 0035

fig_r_m_6.datelabel format(yy)

fig_r_m_6.addtext(b) Period

fig_r_m_6.addtext(0.05, 1.5, font(b)) "Old" steady state

fig_r_m_6.addtext(2, 1.5, font(b)) Transition

fig_r_m_6.addtext(3.6, 1.5, font(b)) "New" steady state

fig_r_m_6.addtext(t,just(c),just(c), font(14)) Interest rate on time deposits



graph fig_r_l_6 r_l_6

fig_r_l_6.axis(left) units(p)

fig_r_l_6.addtext(-0.3, -0.3) %

fig_r_l_6.draw(shade, bottom) 0014 0035

fig_r_l_6.datelabel format(yy)

fig_r_l_6.addtext(b) Period

fig_r_l_6.addtext(0.05, 0.1, font(b)) "Old" steady state

fig_r_l_6.addtext(2, 0.1, font(b)) Transition

fig_r_l_6.addtext(3.6, 0.1, font(b)) "New" steady state

fig_r_l_6.addtext(t,just(c),just(c), font(14)) Interest rate on loans



' Bills held by hh and psbr

graph fig_b_hh_6 b_hh_6

fig_b_hh_6.draw(shade, bottom) 0014 0035

fig_b_hh_6.datelabel format(yy)

fig_b_hh_6.addtext(b) Period

fig_b_hh_6.addtext(0.05, 2.8, font(b)) "Old" steady state

fig_b_hh_6.addtext(2, 2.8, font(b)) Transition

fig_b_hh_6.addtext(3.6, 2.8, font(b)) "New" steady state

fig_b_hh_6.addtext(t,just(c),just(c), font(14)) Government bills held by households



graph fig_r_b_6 r_b_6

fig_r_b_6.axis(left) units(p)

fig_r_b_6.addtext(-0.25, -0.3) %

fig_r_b_6.draw(shade, bottom) 0014 0035

fig_r_b_6.datelabel format(yy)

fig_r_b_6.addtext(b) Period

fig_r_b_6.addtext(0.05, 2.8, font(b)) "Old" steady state

fig_r_b_6.addtext(2, 2.8, font(b)) Transition

fig_r_b_6.addtext(3.6, 2.8, font(b)) "New" steady state

fig_r_b_6.addtext(t,just(c),just(c), font(14)) Interest rate on government bills (base rate)



graph fig_psbr_6 psbr_6

fig_psbr_6.draw(shade, bottom) 0014 0035

fig_psbr_6.datelabel format(yy)

fig_psbr_6.addtext(b) Period

fig_psbr_6.addtext(0.05, 0.1, font(b)) "Old" steady state

fig_psbr_6.addtext(2, 0.1, font(b)) Transition

fig_psbr_6.addtext(3.6, 0.1, font(b)) "New" steady state

fig_psbr_6.addtext(t,just(c),just(c), font(14)) Government budget deficit



' Private wealth

graph fig_v_6 v_6

fig_v_6.draw(shade, bottom) 0014 0035

fig_v_6.datelabel format(yy)

fig_v_6.addtext(b) Period

fig_v_6.addtext(0.05, 0.1, font(b)) "Old" steady state

fig_v_6.addtext(2, 0.1, font(b)) Transition

fig_v_6.addtext(3.6, 0.1, font(b)) "New" steady state

fig_v_6.addtext(t,just(c),just(c), font(14)) Wealth of households



' Public debt

graph fig_gd_per_y_6 gd_6/y_6 gd_net_6/y_6

fig_gd_per_y_6.name(1) Gross government debt

fig_gd_per_y_6.name(2) Consolidated government debt

fig_gd_per_y_6.options linepat

fig_gd_per_y_6.setelem(2) lpat(dash2)

fig_gd_per_y_6.axis(left) units(p)

fig_gd_per_y_6.addtext(-0.4, -0.3) % of GDP

fig_gd_per_y_6.draw(shade, bottom) 0014 0035

fig_gd_per_y_6.datelabel format(yy)

fig_gd_per_y_6.addtext(b) Period

fig_gd_per_y_6.addtext(0.05, 0.1, font(b)) "Old" steady state

fig_gd_per_y_6.addtext(2, 0.1, font(b)) Transition

fig_gd_per_y_6.addtext(3.6, 0.1, font(b)) "New" steady state

fig_gd_per_y_6.addtext(t,just(c),just(c), font(14)) Government debt







'***SCENARIO 7 (increased demand for loans by increasing firms' target inventories-to-sales ratio)***





' Increase firms' target inventories-to-sales ratio

' Value chosen so that FRB requirement violated in the short run (BLR falls below 1)

smpl 0015 @last

sigma0 = 0.413



smpl @all



' Select the alternative Scenario

reform_mod.scenario(n, a="_7") "Scenario 7"



' Set simulation sample

smpl 0003 @last



' Solve the model for the current sample

reform_mod.solve(i=p)



' Store new values of shocked variables

genr sigma0_7 = sigma0



' Return shocked variables to their original values

sigma0 = sigma0_0



' end of scenario





' Create charts for simulated variables



smpl 0001 0050



' GDP and inflation

graph fig_y_k_7 y_k_7

fig_y_k_7.draw(shade, bottom) 0014 0035

fig_y_k_7.datelabel format(yy)

fig_y_k_7.addtext(b) Period

fig_y_k_7.addtext(0.05, 0.1, font(b)) "Old" steady state

fig_y_k_7.addtext(2, 0.1, font(b)) Transition

fig_y_k_7.addtext(3.6, 0.1, font(b)) "New" steady state

fig_y_k_7.addtext(t,just(c),just(c), font(14)) Real GDP



graph fig_pi_7 pi_7

fig_pi_7.axis(left) units(p)

fig_pi_7.addtext(-0.2, -0.3) %

fig_pi_7.draw(shade, bottom) 0014 0035

fig_pi_7.datelabel format(yy)

fig_pi_7.addtext(b) Period

fig_pi_7.addtext(0.05, 0.1, font(b)) "Old" steady state

fig_pi_7.addtext(2, 0.1, font(b)) Transition

fig_pi_7.addtext(3.6, 0.1, font(b)) "New" steady state

fig_pi_7.addtext(t,just(c),just(c), font(14)) Inflation rate



' Monetary and credit aggregates

graph fig_h_hh_7 h_hh_7

fig_h_hh_7.draw(shade, bottom) 0014 0035

fig_h_hh_7.datelabel format(yy)

fig_h_hh_7.addtext(b) Period

fig_h_hh_7.addtext(0.05, 2.8, font(b)) "Old" steady state

fig_h_hh_7.addtext(2, 2.8, font(b)) Transition

fig_h_hh_7.addtext(3.6, 2.8, font(b)) "New" steady state

fig_h_hh_7.addtext(t,just(c),just(c), font(14)) Cash



graph fig_m1_h_7 m1_h_7

fig_m1_h_7.draw(shade, bottom) 0014 0035

fig_m1_h_7.datelabel format(yy)

fig_m1_h_7.addtext(b) Period

fig_m1_h_7.addtext(0.05, 0.1, font(b)) "Old" steady state

fig_m1_h_7.addtext(2, 0.1, font(b)) Transition

fig_m1_h_7.addtext(3.6, 0.1, font(b)) "New" steady state

fig_m1_h_7.addtext(t,just(c),just(c), font(14)) Demand deposits



graph fig_m2_h_7 m2_h_7

fig_m2_h_7.draw(shade, bottom) 0014 0035

fig_m2_h_7.datelabel format(yy)

fig_m2_h_7.addtext(b) Period

fig_m2_h_7.addtext(0.05, 0.1, font(b)) "Old" steady state

fig_m2_h_7.addtext(2, 0.1, font(b)) Transition

fig_m2_h_7.addtext(3.6, 0.1, font(b)) "New" steady state

fig_m2_h_7.addtext(t,just(c),just(c), font(14)) Time deposits



graph fig_l_s_7 l_s_7

fig_l_s_7.draw(shade, bottom) 0014 0035

fig_l_s_7.datelabel format(yy)

fig_l_s_7.addtext(b) Period

fig_l_s_7.addtext(0.05, 0.1, font(b)) "Old" steady state

fig_l_s_7.addtext(2, 0.1, font(b)) Transition

fig_l_s_7.addtext(3.6, 0.1, font(b)) "New" steady state

fig_l_s_7.addtext(t,just(c),just(c), font(14)) Loans



' Bank liquidity and deposit and loan rates

graph fig_blr_7 blr_7 blr_bot blr_top

fig_blr_7.options linepat

fig_blr_7.setelem(2) lpat(dash1)

fig_blr_7.setelem(3) lpat(dash1)

fig_blr_7.draw(shade, bottom) 0014 0035

fig_blr_7.datelabel format(yy)

fig_blr_7.addtext(b) Period

fig_blr_7.addtext(0.05, 0.1, font(b)) "Old" steady state

fig_blr_7.addtext(2, 0.1, font(b)) Transition

fig_blr_7.addtext(3.6, 0.1, font(b)) "New" steady state

fig_blr_7.addtext(t,just(c),just(c), font(14)) Bank liquidity ratio



graph fig_r_m_7 r_m_7

fig_r_m_7.axis(left) units(p)

fig_r_m_7.addtext(-0.3, -0.3) %

fig_r_m_7.draw(shade, bottom) 0014 0035

fig_r_m_7.datelabel format(yy)

fig_r_m_7.addtext(b) Period

fig_r_m_7.addtext(0.05, 1.5, font(b)) "Old" steady state

fig_r_m_7.addtext(2, 1.5, font(b)) Transition

fig_r_m_7.addtext(3.6, 1.5, font(b)) "New" steady state

fig_r_m_7.addtext(t,just(c),just(c), font(14)) Interest rate on time deposits



graph fig_r_l_7 r_l_7

fig_r_l_7.axis(left) units(p)

fig_r_l_7.addtext(-0.3, -0.3) %

fig_r_l_7.draw(shade, bottom) 0014 0035

fig_r_l_7.datelabel format(yy)

fig_r_l_7.addtext(b) Period

fig_r_l_7.addtext(0.05, 0.1, font(b)) "Old" steady state

fig_r_l_7.addtext(2, 0.1, font(b)) Transition

fig_r_l_7.addtext(3.6, 0.1, font(b)) "New" steady state

fig_r_l_7.addtext(t,just(c),just(c), font(14)) Interest rate on loans



' Bills held by hh and psbr

graph fig_b_hh_7 b_hh_7

fig_b_hh_7.draw(shade, bottom) 0014 0035

fig_b_hh_7.datelabel format(yy)

fig_b_hh_7.addtext(b) Period

fig_b_hh_7.addtext(0.05, 2.8, font(b)) "Old" steady state

fig_b_hh_7.addtext(2, 2.8, font(b)) Transition

fig_b_hh_7.addtext(3.6, 2.8, font(b)) "New" steady state

fig_b_hh_7.addtext(t,just(c),just(c), font(14)) Government bills held by households



graph fig_r_b_7 r_b_7

fig_r_b_7.axis(left) units(p)

fig_r_b_7.addtext(-0.25, -0.3) %

fig_r_b_7.draw(shade, bottom) 0014 0035

fig_r_b_7.datelabel format(yy)

fig_r_b_7.addtext(b) Period

fig_r_b_7.addtext(0.05, 2.8, font(b)) "Old" steady state

fig_r_b_7.addtext(2, 2.8, font(b)) Transition

fig_r_b_7.addtext(3.6, 2.8, font(b)) "New" steady state

fig_r_b_7.addtext(t,just(c),just(c), font(14)) Interest rate on government bills (base rate)



graph fig_psbr_7 psbr_7

fig_psbr_7.draw(shade, bottom) 0014 0035

fig_psbr_7.datelabel format(yy)

fig_psbr_7.addtext(b) Period

fig_psbr_7.addtext(0.05, 0.1, font(b)) "Old" steady state

fig_psbr_7.addtext(2, 0.1, font(b)) Transition

fig_psbr_7.addtext(3.6, 0.1, font(b)) "New" steady state

fig_psbr_7.addtext(t,just(c),just(c), font(14)) Government budget deficit



' Private wealth

graph fig_v_7 v_7

fig_v_7.draw(shade, bottom) 0014 0035

fig_v_7.datelabel format(yy)

fig_v_7.addtext(b) Period

fig_v_7.addtext(0.05, 0.1, font(b)) "Old" steady state

fig_v_7.addtext(2, 0.1, font(b)) Transition

fig_v_7.addtext(3.6, 0.1, font(b)) "New" steady state

fig_v_7.addtext(t,just(c),just(c), font(14)) Wealth of households



' Public debt

graph fig_gd_per_y_7 gd_7/y_7 gd_net_7/y_7

fig_gd_per_y_7.name(1) Gross government debt

fig_gd_per_y_7.name(2) Consolidated government debt

fig_gd_per_y_7.options linepat

fig_gd_per_y_7.setelem(2) lpat(dash2)

fig_gd_per_y_7.axis(left) units(p)

fig_gd_per_y_7.addtext(-0.4, -0.3) % of GDP

fig_gd_per_y_7.draw(shade, bottom) 0014 0035

fig_gd_per_y_7.datelabel format(yy)

fig_gd_per_y_7.addtext(b) Period

fig_gd_per_y_7.addtext(0.05, 0.1, font(b)) "Old" steady state

fig_gd_per_y_7.addtext(2, 0.1, font(b)) Transition

fig_gd_per_y_7.addtext(3.6, 0.1, font(b)) "New" steady state

fig_gd_per_y_7.addtext(t,just(c),just(c), font(14)) Government debt