noun
permanent income hypothesis
An economics concept proposed by Milton Friedman, stating that consumption is determined by expected long-term average income rather than current income.
恒常所得仮説によれば、一時的な減税は消費をあまり刺激しない。
According to the permanent income hypothesis, a temporary tax cut does not stimulate consumption much.
Compound of 恒常 (permanent, constant), 所得 (income), and 仮説 (hypothesis). A direct translation of the English economics term 'permanent income hypothesis'.