BONUS: George Hall on Financing World War II and Managing Post-War Debt
Macro Musings with David Beckworth
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Introduction
David Beckworth: World War II was one of the biggest federal government expenditures. He says we got out of that big surge by running primary surpluses and taxing more than we spent. The result is a drop in our debt to GDP ratio from 120% to about 15%. But when interest rates rise, bond prices are going to fall dramatically, he says.
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