Is There a Debt Valuation Puzzle for US Government Bonds?

If the countercyclical demand for the safe asset is strong enough, and maybe even persist beyond the recession, then it would mean more or increased senior wage flows into the US. Could that in turn be part of the explanation for the low inflation, say the lower than target inflation over the past decade prior to the pandemic? That's a very good point, one that we have not explored, but I think you're on to something there. It's entirely feasible if there is a shortage ... The way you kind of restore a equilibrium and sort of increase the supply of safe assets in real terms is by having lower than expected inflation in response to a shock. So this is a nice se

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