This suggests you can adjust GDP for debt by subtracting deficit (w or w/o inflation). Seems odd? Why not interest? http://seekingalpha.com/article/1473321-the-truth-about-qe-the-deficit-and-gdp-growth …
@ritwik_priya so procedurally, holders of old bonds simply get issued new bonds with face value, new date, that they can then sell?
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@vgr Individual holder does not. System as a whole does, And because the system does, the dynamic you suggest holds for some institutions. -
@ritwik_priya I've never bought bonds directly, only as part of blended funds. Might try just to understand process.
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@vgr E.g. Primary dealers.Thanks. Twitter will use this to make your timeline better. UndoUndo
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@vgr Of course, what happens 'procedurally' is a question of at what level you want to zoom in. I'd think the old debt gets paid down and...Thanks. Twitter will use this to make your timeline better. UndoUndo
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@vgr ..new debt gets issued - separate transactions. But at the *plumbing* level, I don't really know. *Net* cash flows easier to visualise. -
@ritwik_priya I usually find myself surprised by some non-trivial insight when digging into procedural OS in finance. Devil in details :) - Show replies
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