David Beckworth on the Safe Asset Theory of Inflation, Comparing Central Bank Frameworks, and a Year of Macro Musings in Review
Macro Musings with David Beckworth
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Debt to GDP - Is There a Supply Side?
David Frum: How can you possibly say there's a shortage of these securities, of what appears to be a mass of increase in their support? He says the real demand for those securities still outstrips or is relatively high compared to the supply. The U.S. added five trillion dollars of debt this year and its nominal stock of debt now stands at 21 23 trillion dollars - around 100% debt to g d p.Frum: Some of this build up is an indogenous response. People are desiring to hold those securities. You can kind of viewse this growth in debto jutepes as an indodgenous response to the safe asset shortage.
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