Conversation

Is there a good primer on interpreting the debt-to-gdp ratio of nations? "Bad" countries (Japan, Greece) seem to top 150.
Image
6
2
Replying to
A good chunk of Japanese debt is owned by the central bank; the fancy term for this is "monetary financing" of deficit.
1
1
Replying to
Yes, the Japanese debt buying program started as "legitimate" QE, then expanded in 2015-2016 to "helicopter money" (monetary financing)
Replying to
And since QE lowers yields on govt bonds, allowing govts to borrow more, QE is a kind of indirect monetary financing as well.
Replying to
Nothing stops the FED from doing the same thing. Pundits are wrong: yes you can borrow money indefinitely, by inflating your currency.