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If a big economy like the US is going to default on their debts, who is taking the loss AND survives??? #asknostr
James Lavish's avatar James Lavish
Hello. The US government now pays over $3 billion of interest on its debt per day. Have a great Thursday.
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From Brave AI Characteristics of Fiscal Dominance Fiscal dominance refers to a situation where a country’s fiscal policies, particularly its debt and deficit levels, become so significant that they override the effectiveness of monetary policy in controlling inflation. In other words, when a government’s debt exceeds a certain threshold, it can no longer rely solely on monetary policy (interest rates and money supply) to manage inflation, as the central bank’s actions become less potent.
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