It is clear that this is directly relevant to the effectiveness of QE by the central bank. This was explicitly intended to be a temporary injection of central bank reserves that would eventually be fully reversed. Furthermore, it came in the context of a programme of fiscal tightening that was intended to reduce, not increase, the issuance of public debt over time. This made the debt more attractive, thus reducing aggregate demand for goods and services, in the way that Prof Sims postulates.
There is an easy way to get at the fiscal price theory. The debt charges get pushed down to final consumption where demand falls as a result of little people having no do-re-me left.
Another theoretical basis is to look at the loans and deposits at the Fedc. It is all government borrowing and all private sector deposits. The price of anything in this economy depends on the Swamp inventing something useful with that 2.4 trillion dollar loan. Unfortunately, it seems the 2.4 trillion was a bailout for failed Swamp, which means rich people get to collect interest paid by little browns because the kanosians fooled us.
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