Interest paid on treasury bonds is a policy choice. There is no default risk, an... | Hacker News

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dools 4 months ago | parent | context | favorite | on: Ask HN: Predictions for 2025?

Interest paid on treasury bonds is a policy choice. There is no default risk, and the govt could easily implemnet ZIRP forever and run the economy without monetary policy entirely.

Lionga 4 months ago [–]

Have fun with turkey like inflation in that case.

dools 4 months ago | [–]

High interest rates are inflationary because they increase government transfer payments.

Lionga 4 months ago | | [–]

Please apply as minister of finance for turkey, Erdogan will love you.

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