Dehn: Global Conditions a Problem for Fed's Rate Path

The video discusses the implications of rate hikes by the Federal Reserve, focusing on the economic conditions that make these hikes significant. It explores the outdated notion of 'original sin' in emerging markets, highlighting the current ownership of local currency bonds by local pension funds. The discussion also covers Japan's recent fiscal policy moves, emphasizing the potential currency adjustments resulting from central bank actions.

What implications does targeting a low yield on government bonds have for fiscal policy?

In what ways can fiscal spending be influenced by central bank policies?