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Government 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 moneta
by plonk 3y ago
Government 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?