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_Deficit_ levels can reduce the exchange rate; but that's not something the U.S. is having problems with at the moment.
by kaonashi 12y ago
_Deficit_ levels can reduce the exchange rate; but that's not something the U.S. is having problems with at the moment.
- tinco 12y agoIt's not? You mean to say debt is not growing any longer? (deficit is growth of debt is it not?) (genuinely curious, I'm only on page 30 of piketty :P)
- kaonashi 12y agoIn nominal terms, yes. The point is that it never becomes unsustainable because the interest rates paid are determined by the issuer, and inflation is a product of net spending (deficit). (not really Piketty, more Fullweiler)