Eric Leeper on the Interactions of Fiscal and Monetary Policy
Macro Musings with David Beckworth
00:00
Is There an Immediate Linkage Between Fiscal Policy and the Gold Standard?
If italy defaults on its debt, germany might step in and recapitalize the e c b. Same thing with the gold standard. You can't be controlling inflation if you're generating seniorage revenue to make sure your balance sheet is in good order. So germany may step in for that reason, rit that the alternative is very high inflation.
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