Wednesday, November 18, 2020

I have one for Jason Furman

 If the tax effects make the student loan bailout neutral, then the siegniorage fees should balance out the interest subsidy; and the general stimulus is neutral. Except the total tax incidence hits differently in both cases.  In the Fed tax, the retail, regulated account holders are hit the worse.

At some point soon we get a bank rebellion, or collapse, however they are supposed to happen.

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