So you thought the “Crowding Out Effect” and “Phillips Curve” Were Long Gone
thruthecycle.substack.com
The Great Recession was largely the consequence of too much household debt. The next recession will probably be viewed as the offshoot of excessive US government indebtedness. It is not beyond the realm of a possibility that the nearly $1 trillion of US government borrowing expected for the current quarter may push Treasury bond yields up to heights that roil financial markets and curb private-sector spending. If the “crowding out effect” were to return, the political opposition to increased federal spending and more regulations will be mighty enough to force Washington into reversing course.
So you thought the “Crowding Out Effect” and “Phillips Curve” Were Long Gone
So you thought the “Crowding Out Effect” and…
So you thought the “Crowding Out Effect” and “Phillips Curve” Were Long Gone
The Great Recession was largely the consequence of too much household debt. The next recession will probably be viewed as the offshoot of excessive US government indebtedness. It is not beyond the realm of a possibility that the nearly $1 trillion of US government borrowing expected for the current quarter may push Treasury bond yields up to heights that roil financial markets and curb private-sector spending. If the “crowding out effect” were to return, the political opposition to increased federal spending and more regulations will be mighty enough to force Washington into reversing course.