Why Are We Doing This?: Fiscal Policy Edition
[Sarcasm]Yes, I know: "small businesses and families are tightening their belts. Their government should, too".
Deficit spending leads to national default. More debt means rising expectations of inflation, and so the Federal Reserve has to tighten and raise unemployment above the natural rate in order to hit its inflation target once inflation expectations have become de-anchored due to high debt.
ZIMBABWE!
GREECE!!
BENGHAZI!!!
[/Sarcasm]
