Interest Rates and the First Rule of Holes

In Analysis by Michael Rae

The Peter G. Peterson Foundation is a think tank focusing on fiscal challenges to America’s future. To that end, the Foundation invites experts from across the political spectrum to contribute their insights about the challenges the U.S. faces from its fiscal policies. Specifically, they’ve asked them to answer two questions:

What is the impact of inflation and rising interest rates on our nation’s fiscal outlook?
How should fiscal policy be used in this period of high inflation?

Brian Riedl contributed a very timely essay on the topic of how rising interest rates threaten Washington’s solvency. In the following excerpt, he describes the fundamental

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