Peter Stella on the Quasi-Fiscal Implications of Central Bank Crisis Intervention
Macro Musings with David Beckworth
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The Market Value to GDP Ratio
The market value to GDP ratio peaked at 103% in December 2020 and then earlier this year it fell down to like 84, 83%. So debt adjusted for changes in prices actually less today than it was a few years back before the pandemic. The reason interest rates are going up is because expected inflation part of that rate is going up. And that expected inflation term represents an ongoing increase in the price level.
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