What “fiscal dominance” would mean for the U.S. economy

Fiscal dominance occurs when monetary policymakers prioritize the objectives of fiscal policymakers over their own mandates.

The government issued approximately $185 billion in war bonds, causing the national debt to surge from $49 billion in 1941 to nearly $260 billion by the conclusion of 1945.

“And the central bank agreed to buy a lot of debt,” Kuttner said.

This arrangement simplified the process for the U.S. Department of the Treasury to sustain funding for <a s debated, but some folks argue that the <a Historically, we would be worried about a large rate sell-off having impacts on the equity market," said Meghan Swiber, a rates strategist at Bank of America. "But what we've seen is that the equity market continues to hit new highs."

Want to know what the bond market is thinking? Check out the yield curve

National Debt

Peter G. Peterson Foundation

The cause of the U.S. <a s Second Term