Central bankers warn of QE threat to budget discipline, the German and Dutch central bank presidents warn

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Central bankers warn of QE threat to budget discipline, the German and Dutch central bank presidents warn that quantitative easing and low interest rates make discipline in government budgeting more important. Debt and deficits must be cut.

How might a government budget deficit and debt threaten financial stability and make the central bank’s job harder?

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Foundations of Macroeconomics

ISBN: 978-0134492001

8th edition

Authors: Robin Bade, Michael Parkin

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Question Posted: May 22, 2018 01:22 AM

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Central bankers warn of QE threat to budget discipline, the German and Dutch central bank presidents warn

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A large budget deficit means that the government must borrow in the loanable funds market An incr...View the full answer

Foundations of Macroeconomics

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