This tag examines the interaction between public debt, fiscal sustainability and monetary policy. When debt reaches high levels, central banks can find their choices constrained — this is fiscal dominance. It analyses debt trajectories, the trade-offs between inflation and austerity, and the tensions between governments and central banks.
Record Treasury issuance since 2022 and the recomposition of the buyer base durably structure the DGS10 term premium. Understanding this supply-demand equation has become a prerequisite for reading the 10-year yield in the contemporary fiscal regime. DGS10 does not form…
Fiscal policy interacts with the real economic cycle through implementation lags, deferred effects and stabilisation mechanisms. Automatic stabilisers act faster than discretionary measures, with major implications for cyclical timing.
