Macro Musings with David Beckworth cover image

Hanno Lustig on Fiscal Dominance, Inflation, and the Effects of Long-term Interest Rate Decline

Macro Musings with David Beckworth

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Fiscal Dominance in the US

When volker took over at the helm of the fed in the early eighties, they were quite different. The us. Was actually running small primary surpluss. In that situation, walker had enough room to maneuvre. And so right now, we're in a regime where the debt to g d p ratio is well above a hundred%.

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