The Limits of Fed Rate Hikes

I was in Argentina a year ago at the Central Bank. And I pointed this out in pesos rather than dollars because their interest rates, they just raised them to 30%. All these pesos they're paying was like 20% of GDP. He said, well, yeah, I know. That when debt to GDP gets too high, then you can't use it to fight inflation as the fiscal impact dominates. We've agreed to keep their interest rate higher than the inflation rate. So we have to keep doing this.