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When considering non-government sector burrowing due to lower interest rates, these transactions net to zero for the private sector, because an asset and a liab
by bubbleRefuge 5y ago
When considering non-government sector burrowing due to lower interest rates, these transactions net to zero for the private sector, because an asset and a liability is created to the private sector. In the case of government paying interest to the private sector, the private sector balance sheet nets positive.