Macro Musings with David Beckworth cover image

Brian Riedl on the Current and Future Outlook for US Public Finance and Budget Reform

Macro Musings with David Beckworth

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The Dollar Size of the Economy and the Primary Deficit

The size of the economy, and that's what we look at debt to GDP ratio. The market value of the treasuries have fallen dramatically as interest rates have shut up higher than expected. In real terms, it's actually less once you adjust for inflation. But I don't see directly how that makes servicing the debt easier or a share of tax revenues coming in.

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