Eric Lonergan on Helicopter Drops and How to Improve Monetary Policy
Macro Musings with David Beckworth
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What Is the Equity Risk Premium?
The state can borrow at close to zero real over 15, 20 years. It can buy assets that should generate between four and eight % real return. The private sector has such a strong desire to own government bonds in this world of low inflation. And the fact that the government is the kind of monopoly issue of insurance policies against recession is kind of like a a benefit. I its a totally unintended benefit from having no inflation.
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