TBF - Government Spending Isn't Always Inflationary
By Frank Shostak
The US debt ceiling suspension, signed in February 2018, expires at the beginning of March this year. Some commentators are of the view that the US Treasury must carry out special measures if it expects a delay in raising the debt ceiling in March.
In this view, the Treasury would have to draw down its deposits at the Fed and deposit the cash in various government department accounts at commercial banks, for future use to pay government salaries and contractors' fees.
Government Spending Isn't Necessarily Inflationary
These commentators are of the view