Apparently we are due for some excitement in Treasury market, as per the analysis in "A Debt Crisis is on the Horizon," penned by the luminaries Michael J. Boskin, John H. Cochrane, John F. Cogan, George P. Shultz and John B. Taylor. As a regular reader might suspect, I am somewhat skeptical about the claims in said article. That said, one may note that the discussion therein is not totally incompatible with a Functional Finance framework, although we would need to paraphrase what they wrote. However, the interest rate determination part of the article is pretty weak.
The article itself is not particularly interesting once we strip out the boilerplate that is designed to sell newspapers. As a writing exercise, it is fairly interesting -- they managed to hit most of the boxes for fiscal conservative scare stories....
More faux economics pushing a political agenda.
