Opinion
Profligate public spending amplifies inflation crisis
Financial markets might spit the dummy and unilaterally impose a much higher long-term cost of capital on everyone.
Christopher JoyeColumnistThe idea that the world is being contaminated by “fiscal dominance”, or conditions where profligate public spending overwhelms the contractionary influence of tight monetary policy, is getting traction in sophisticated investment circles.
It helps explain why, despite substantial increases in interest rates, global inflation remains way above central bank targets.
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