j.r. leonard

Watching public policy types figure out how to "pay for" spending when they can lock in borrowing rates far below economic growth rates for decades is....frustrating. Governments should be run more like businesses!

Ah yes, locking in borrowing rates by ** checks notes** issuing long term bonds that the Fed will have to buy with short maturity, interest bearing liabilities if it impacts interest rates too much. If we want to "lock in" low interest rates, we need ZIRP.

all that matters for the sake of the argument is r relative to g which is probably independent of level of short rates -- also good reasons to think certain health reforms would be disinflationary but that's a separate issue

My point is simply there's no way to "lock in" interest rates for the consolidated government except permanently changing interest rate policy.