tag:blogger.com,1999:blog-2761684730989137546.post3849683403241319895..comments2024-03-18T19:09:18.510-04:00Comments on Mike Norman Economics: Rates vs. debt...gotta love this chart!mike normanhttp://www.blogger.com/profile/03296006882513340747noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-2761684730989137546.post-46717374252059691202012-06-14T11:45:46.081-04:002012-06-14T11:45:46.081-04:00"Anonymous said... can someone explain to me ..."Anonymous said... can someone explain to me why high govt debt doesn't lead to bond rate rises?"<br /><br />The cb sets the interest rate and yields along are relative to the interest rate based on market expectations of future cb activity relative to changing economic conditions and price stability.<br /><br />A high amount of government debt doesn't lead to inflation, in that deficits generally increase when the economy is not doing well, so a large deficit indicates poor economic conditions, i.e., nongovernment prefers to save rather than spend. That's deflationary rather than inflationary.Tom Hickeyhttps://www.blogger.com/profile/08454222098667643650noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-78218780095905651242012-06-14T04:58:06.473-04:002012-06-14T04:58:06.473-04:00can someone explain to me why high govt debt doesn...can someone explain to me why high govt debt doesn't lead to bond rate rises?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-67019838565582237192012-06-13T15:54:11.717-04:002012-06-13T15:54:11.717-04:00although the MMT explanation regarding why increas...although the MMT explanation regarding why increased debt doesnt cause bond rates to spike,is enough for me, wouldnt it be more appropriate to use debt/gdp ratio instead of debt in absolute numbers?Crossovernoreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-52479369451210950962012-06-13T14:35:49.999-04:002012-06-13T14:35:49.999-04:00You can add Jamie Dimon with his "roadmap&quo...You can add Jamie Dimon with his "roadmap" and Simpson-Bowles comment at the end of his testimony today. Yikes!Chewituphttps://www.blogger.com/profile/05912166063718393059noreply@blogger.com