“Fiscal dominance” refers to a situation where government debt grows so large that the nation’s central bank feels that it has little choice except to focus on making sure the government does not default–even if it means a surge of inflation. Janet Yellen described the issue and risks of fiscal dominance concisely in her comments…
Yellen on Fiscal Dominance
Yellen on Fiscal Dominance
17 Jan 2026 Leave a comment
in budget deficits, financial economics, fiscal policy, macroeconomics, monetary economics
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