Australia is being paid to borrow. For those funds at least, borrowing is the opposite to a burden on the budget.
The Commonwealth can never become insolvent. It ought to help out the states.
There's more to that Coronavirus. Even before it, businesses weren't keen to invest.
Modern Monetary Theory is suddenly popular because it implies governments can spend as much as they need to. But that spending comes with risks.
Canada’s federal deficit has skyrocketed since the beginning of the coronavirus pandemic. How will Ottawa pay back the money its borrowed?
THE CANADIAN PRESS/Sean Kilpatrick
Canada's federal deficit has ballooned as Ottawa spends billions in response to the coronavirus pandemic. An economist explains why the massive spending will not harm Canadians in the future.
‘The name’s Bond, Reinvented Bond.’
With government debt soaring following moves to combat the coronavirus pandemic, now is the ideal moment to change how states borrow money.
In DC Comics’ world of opposites, a bizarro bond is “guaranteed to lose money”. Today a bizarro bond is not just a fantasy.
In many countries people are now paying more for bonds than they will receive at maturity. These negative interest rates should make it a good time for investment.
The government is creating a new agency to finance infrastructure, like a bond aggregator to fund public housing.
The federal government keeps coming up with new ways to finance infrastructure, but it isn't clear they will shift the cost or risk away from government.
It’s too soon to say what advantages there are to issuing government bonds using blockchain technology.
Despite a media statement announcing that Commonwealth Bank of Australia (CBA) and Queensland Treasury Corporation (QTC) have created the first government bond using the blockchain (dubbed the “cryptobond…
The world changed dramatically after the 2008 financial crisis and central banks are adjusting.
The 2008 financial crisis exposed major gaps in central banks' operations. New features like quantitative easing have since emerged.
Credit rating agencies often elicit criticism when they downgrade countries.
Credit rating agencies have come in for a lot of flack. But the bottom line is that to attract investors with deep pockets countries can't avoid having a credit rating. And a good one at that.
In times of market jitters, investors flock to “safe-haven” investments like government bonds.
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Uncertainty about economic growth is driving record low long-term government bond yields, but there's more to the story.
Gold and silver are traditionally considered “safe havens”.
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Safe haven investments are investments that provide a low level of risk during periods of extreme economic uncertainty. The problem is that a safe haven investment is a safe haven investment until it is…