The Fiscal Theory of the Price Level
Real return bonds adjust both principal and interest for inflation. If inflation goes up, you get more money back. Nice. But when everyone expects inflation, you pay a commensurately higher price ahead of time., say, a real return bond might pay 1 per cent, so you get 6 per cent after inflation adjustment; but a regular bond will pay something like 6 per cent already.
So why stop issuing real return bonds? The government may suspect that inflation will go up a lot more, and it will then have to pay more to bondholders. Non-indexed debt can be inflated away if the fiscal situation worsens. The cumulative 11-per-cent inflation since January, 2021, has inflated away 11 per cent of the debt already. Argentines have seen a lot more.
GET THE TRUDEAU GOVERNMENT OUT ...WE WANT AN ELECTION TODAY 🙂
हमने इस समाचार को संक्षेप में प्रस्तुत किया है ताकि आप इसे तुरंत पढ़ सकें। यदि आप समाचार में रुचि रखते हैं, तो आप पूरा पाठ यहां पढ़ सकते हैं। और पढो:
इंडिया ताज़ा खबर, इंडिया मुख्य बातें
Similar News:आप इससे मिलती-जुलती खबरें भी पढ़ सकते हैं जिन्हें हमने अन्य समाचार स्रोतों से एकत्र किया है।
Curve Finance: Few factors to consider before you leap into any CRV tradeCRV’s price has rallied by over 100% since the year started. Buyers can no longer support any further price rally, as bullish sentiment weakens. The price of Curve Finance’s CRV token has seen a significant increase, doubling in value since the beginning of the current bull cycle. Exchanging hands at $1.08 at press time, the […]
स्रोत: CryptoAmb - 🏆 22. / 68 और पढो »
Lido Finance: Decline in TVL, re-emergence of bears, and everything in betweenDue to the fall in prices of some native coins, Lido’s TVL declined in the last week. The buying pressure for LDO has declined significantly, and a price drawback might be on the horizon. Lido Finance [LDO], a prominent liquid staking protocol, experienced a drop in its Total Value Locked (TVL) in the past week […]
स्रोत: CryptoAmb - 🏆 22. / 68 और पढो »
Calgary launches program to finance clean energy upgrades on homesThe Clean Energy Improvement Program can help with the up\u002Dfront costs of home improvement projects, including solar panel installation. Can’t get any cleaner energy than natural gas In a city with these kinds of tax breaks, it’s like living in a giant condo; you end up paying for your neighbours renovations and repairs wether yours needs it or not. Good gawd already are paying so dam much for taxes, mortgage can't afford to add another cent to debt!
स्रोत: calgarysun - 🏆 63. / 52 और पढो »
Calgary launches program to help homeowners finance clean energy upgradesThe Clean Energy Improvement Program can help with the up\u002Dfront costs of home improvement projects, including solar panel installation.
स्रोत: calgaryherald - 🏆 64. / 52 और पढो »