Central bankers are going to have to get out of the way and stop saying the plumbing of the bond market is broken whenever the bond markets signals there is a fiscal problem. Their grandkids will thank them for it.👇
Robin Brooks
Robin Brooks21 tuntia sitten
We all want fiscal responsibility. But that won't happen as long as central banks cap yields when they spike, as the Fed did in 2020. You can cap yields, but that inevitably incentivizes bad fiscal policy. Our fiscal mess is inextricably linked to the Fed.
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