Monetary Policy & Inflation | US
US Public Debt Dynamics to Worsen
- By Dominique Dwor-Frecaut
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- 5 min read
Summary
- Recent public debt dynamics that saw public debt falling relative to GDP, despite record deficits, are unlikely to last.
- Instead, the combination of high GDP growth and low long-term yields is likely to reverse due to higher inflation, tighter monetary policies and the return of a positive bond-stock correlation.
Summary
- Recent public debt dynamics that saw public debt falling relative to GDP, despite record deficits, are unlikely to last.
- Instead, the combination of high GDP growth and low long-term yields is likely to reverse due to higher inflation, tighter monetary policies and the return of a positive bond-stock correlation.
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