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July 2023 Newsletter: Fiscal Dominance
This newsletter issue elaborates on my recent article about the relationship between interest rates and consumer price inflation to explore the topic of fiscal dominance. One of my big themes since 2020 was that the fiscal policy we are seeing this decade will be inflationary, and that unlike recent business cycles, interest rates may not be the best policy tool to deal with that inflation. And while that has been correct, the challenge has been navigating the specific path as we go through the various twists and turns of such an unusual macroeconomic environment. The year 2022 was tough for most investors. The ... (full story)