Isn't the refilling of the TGA partially offset by the TGA fulfilling its obligations (salaries, interest payments etc.). As the refilling takes place over time the net effect is smaller, meaning debt issuance - payments = net liquidity drain.
Sure, we will see some liquidity drain but I doubt it's gonna be as bad as many people think.
I think you need make a distinction between inside and outside money (stuck within the banking system and not spent on goods & services).
Isn't the refilling of the TGA partially offset by the TGA fulfilling its obligations (salaries, interest payments etc.). As the refilling takes place over time the net effect is smaller, meaning debt issuance - payments = net liquidity drain.
Sure, we will see some liquidity drain but I doubt it's gonna be as bad as many people think.
Excellent read!
Thanks for organizing this so well!
Great write-up. Hope to see you continue to expand your topic coverage in the future!
fantastic information on Macro.