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Because interest rates are increasing? Both the cost of debt and the cost of the dollar increase.
by plonk 3y ago
Because interest rates are increasing? Both the cost of debt and the cost of the dollar increase.
- ngetchell 3y agoI suspect rising interest rates and stable gas prices are what is causing lower inflation. The parent stated a link between more debt and more inflation and was hoping for an explanation that would explain the link.
- plonk 3y agoGovernment spending both increases the government's debt and causes inflation. Maybe that's the link they are looking for. Plus, I don't know much about monetary policy, but wouldn't the Fed feel obliged to start quantitative easing if the government's debt put it in difficulty?