A more useful observation is that rate hikes now have a large, direct fiscal price tag. This does not reduce "fiscal capacity" (which is about the ability to meet payment obligations of any size) but "fiscal space" (which is about inflation risk associated with making those payments). The right question: Is the stream of interest payments inflationary, given who receives the interest as income?
— Stephanie Kelton (@StephanieKelton) October 17, 2026
Funny how there is never a lack of money available to pay for killing other people & socializing the losses of financiers. No wonder Woodford & Co. had to omit the stock of money in interest rate determination (& i is the price of the use of money over time in terms of money)
— Robert Parenteau,CFA until CFAI CMO fraud revealed (@MacroEdge1) October 17, 2026
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