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<blockquote style="position: relative; padding-left: 55px;"><section><a href="https://mastodon.social/users/HistoPol/statuses/112664647718966247">HistoPol (#HP) 🥥 🌴 (histopol@mastodon.social)'s status on Sunday, 23-Jun-2024 16:01:36 JST</a><a href="https://mastodon.social/@HistoPol" title="histopol@mastodon.social"><img src="https://gnusocial.jp/avatar/44595-48-20221221005726.webp" width="48" height="48" alt="HistoPol (#HP) 🥥 🌴" style="position: absolute; left: 0; top: 0;">HistoPol (#HP) 🥥 🌴</a><div><a href="https://mastodon.social/@HistoPol/112664645296138454" rel="in-reply-to">in reply to</a><ul><li></ul></div></section><article><p><a href="https://masto.ai/@GhostOnTheHalfShell">@GhostOnTheHalfShell</a> <a href="https://a.gup.pe/u/economics-that-works">@economics-that-works</a> </p><p><a href="https://mastodon.social/tags/Economics" rel="tag">#Economics</a> <a href="https://mastodon.social/tags/PublicFinances" rel="tag">#PublicFinances</a><br><a href="https://mastodon.social/tags/US" rel="tag">#US</a> <a href="https://mastodon.social/tags/EU" rel="tag">#EU</a> <a href="https://mastodon.social/tags/ConvergenceCriteria" rel="tag">#ConvergenceCriteria</a></p><p>(5/n)</p><p>...because you have to pay ever more of your currency to repay the foreign debt. Also, imported goods become more expensive for the same reason (<a href="https://mastodon.social/tags/ImportedInflation" rel="tag">#ImportedInflation</a>.)<br>In order to support your currency's external value,  you need to increase national interest rates.</p><p>(And here, the <a href="https://mastodon.social/tags/InternationalFisherEffect" rel="tag">#InternationalFisherEffect</a> comes into play: <br>"The international Fisher effect...is a...</p></article><footer><a rel="bookmark" href="https://gnusocial.jp/conversation/2957779#notice-6467106">In conversation</a><time datetime="2024-06-23T16:01:36+09:00" title="Sunday, 23-Jun-2024 16:01:36 JST">about 5 months ago</time> <span>from <span><a href="https://mastodon.social/@HistoPol/112664647718966247" rel="external" title="Sent from mastodon.social via ActivityPub">mastodon.social</a></span></span><a href="https://mastodon.social/@HistoPol/112664647718966247">permalink</a></footer></blockquote>

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HistoPol (#HP) 🥥 🌴 (histopol@mastodon.social)'s status on Sunday, 23-Jun-2024 16:01:36 JSTHistoPol (#HP) 🥥 🌴
in reply to
- GhostOnTheHalfShell
@GhostOnTheHalfShell @economics-that-works
#Economics #PublicFinances
#US #EU #ConvergenceCriteria
(5/n)
...because you have to pay ever more of your currency to repay the foreign debt. Also, imported goods become more expensive for the same reason (#ImportedInflation.)
In order to support your currency's external value, you need to increase national interest rates.
(And here, the #InternationalFisherEffect comes into play:
"The international Fisher effect...is a...
In conversationabout 5 months ago from mastodon.socialpermalink