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Interest paid on treasury bonds is a policy choice. There is no default risk, and the govt could easily implemnet ZIRP forever and run the economy without monet

by dools 2y ago

Interest paid on treasury bonds is a policy choice. There is no default risk, and the govt could easily implemnet ZIRP forever and run the economy without monetary policy entirely.

Lionga 2y ago
Have fun with turkey like inflation in that case.
- dools 2y ago
  High interest rates are inflationary because they increase government transfer payments.
  - Lionga 2y ago
    Please apply as minister of finance for turkey, Erdogan will love you.