Public debt can be both a tailwind and a headwind on the economy, depending on the size of the debt to the size of the economy. Debt is manageable if it grows at a slower rate than economic growth. Public debt thresholds In countries where the public debt is below 60% of GDP, the debt has a positive impact on the economy. When the size of the public debt is between 60 and 90%, the effects are negligible. Public debt becomes a...
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Bond King Jeffrey Gundlach has got the economy on a recession watch while the inflation fire burns. The Fed’s mandatory inflation target of 2% and transitory inflation view, touted by Fed Chair Powell only a few months ago, is now assigned to the fairy tale books for adults. The easy part of the Greatest monetary easing experiment in the history of finance is over The first stage of the Fed’s monetary policy, which was to...
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