About this work
Market stress in 2022 challenged the idea that advanced economies had unlimited fiscal room. Robin Brooks, Jonathan Fortun and Jonathan Pingle connect UK bond turmoil, yen depreciation under Japan’s yield cap and Italy’s reliance on the ECB to constraints on government financing. Their November 2022 assessment argues that low interest rates should not be mistaken for unlimited capacity to borrow.
Abstract
Market stress in 2022 challenged the idea that advanced economies had unlimited fiscal room. Robin Brooks, Jonathan Fortun and Jonathan Pingle connect UK bond turmoil, yen depreciation under Japan’s yield cap and Italy’s reliance on the ECB to constraints on government financing. Their November 2022 assessment argues that low interest rates should not be mistaken for unlimited capacity to borrow.
Cite this work
Robin Brooks, Jonathan Fortun, Jonathan Pingle (2022). Global Macro Views: The End of the MMT Illusion. Institute of International Finance.