interest rates

6 Nov 2023

Olivier Blanchard quoted

Our reading · no longer heldWhen safe interest rates are expected to remain below growth rates for a long time, rolling over public debt without later tax increases is feasible and public debt may carry no fiscal cost.

Across advanced economies, the celebrated ( r - g ), i.e., the difference between the interest rate and the growth rate, appears to have durably changed sign or, at a minimum, to have gone from a substantially negative number to a number closer to zero.

SaidAcross advanced economies, the celebrated ( r - g ), i.e., the difference between the interest rate and the growth rate, appears to have durably changed sign or, at a minimum, to have gone from a substantially negative number to a number closer to zero.

↗If markets are right about long real rates, public debt ratios will increase for some timepiie.com

6 Sept 2010

Scott Sumner quoted

Our reading · no longer heldAggressive quantitative easing should raise long-term interest rates, because effective monetary stimulus raises them.

I predicted that aggressive QE would raise long term interest rates, a view which seemed to be refuted by the response on T-bond yields to the March 2009 Fed QE announcement.

SaidI predicted that aggressive QE would raise long term interest rates, a view which seemed to be refuted by the response on T-bond yields to the March 2009 Fed QE announcement.

↗A few of my mistakesthemoneyillusion.com