It’s called financial repression. You let the inflation run high, which leads to more tax collection and stable debt to gdp ratio, which allows them to borrow more and pay back earlier debt by printing inflated dollars.
Peter points out that keeping rates stable while inflation rises again, is effectively the same thing as lowering them.
https://open.spotify.com/episode/5q4e6hs8CAKBqGN7AY0xNP?si=vOCbWcfUS7614eRIkvk-2A
It’s called financial repression. You let the inflation run high, which leads to more tax collection and stable debt to gdp ratio, which allows them to borrow more and pay back earlier debt by printing inflated dollars.
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