“Central bankers’ great fear is that we’re entering a new era of ‘fiscal dominance,’ in which the money supply is being managed not to achieve low and stable inflation, but to help elected politicians avoid hard choices around taxes and spending,” Axios reports.
“It comes as inflation has already been elevated in much of the world for years and as longer-term interest rates are climbing.”
“At the same time, elected governments are under intense political pressure not to enact the tax increases or public benefit cuts that would improve their debt outlooks.”
