What Is the Relationship Between Monetary Policy and Fiscal Policy?
Finance does. Central banking should do it also. We also use monetary policy to bet the private defaults. If we do not bet the defaults we get mis pricings and eventual sudden stop including a depression.
Many central bankers hide the default bets, pretend they do not exits. Then that central banker loses market share and government suffer liquidity shortage, the default becomes sudden, like the Nixon Shock.
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