"Austerity" in the Context of the Global Economic Downturn: Wednesday Hoisted from Archives from Two Years Ago Weblogging
Lernerism in a Hicksian Straightjacket

Is the U.S. Treasury a Cost or a Profit Center for the Federal Government?

When the average interest rate r on U.S. Treasury debt is and is expected to remain lower than the economy's trend growth rate g, the U.S. Treasury is not a cost center--debt amortization is not an expenditure category--but rather a profit center--analogous to the medieval Medici Bank, which Florentines and others paid handsomely to safeguard their money…

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