I find this to be a thorny issue to think clearly about.
Heh. Way to understate a problem.
It helps a little to realize that the government doesn’t (and can’t) control interest rates directly. Most public debt is auctioned off, at rates set by the market. The QUANTITY is controlled by the government, and various reserve requirements for banks, both of which have a LOT of influence over the rates the market expects/accepts.
Heh. Way to understate a problem.
It helps a little to realize that the government doesn’t (and can’t) control interest rates directly. Most public debt is auctioned off, at rates set by the market. The QUANTITY is controlled by the government, and various reserve requirements for banks, both of which have a LOT of influence over the rates the market expects/accepts.