It seems that most if not all advanced economies (US, Japan, UK to name a few) have been running budget deficits since basically the last 20 years. I understand that current debts lose value over time because of inflation and economies grow, but how can they do this for basically ever? I can’t wrap my head around the maths that makes this possible, and the markets don’t seem all that worried
In: 316
The value the market places on securities is related to their expected future value. Why would a Federal budget deficit make me think that Amazon, let’s say, is going to be less valuable as a company next year?
Latest Answers