Peter Stella on the Fiscal Theory of the Price Level
Macro Musings with David Beckworth
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The Treasury Is Not Paying Right Now It's Just a Debt Management Operation
The Treasury is issuing floating right now instead of the Fed just issuing kind of one instrument which is interest on service or overnight reverse repo. Other countries that's identified the central bank issuing debt so you absorb all the excess reserve but I don't like that because of fragments in the debt market The US thought of doing that at the beginning of the GFC and New York budget decided not to do it. Peter Stella: Blurring the boundaries between fiscal responsibilities and central bank responsibilities will be a real dilemma going forward.
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