I wanted to ask the following:
What would be the "text-book" result of governement taking on massive debt immediately before a significant recession
Supposing, entirely hypothetically ;), that a major Western government had taken on massive future debts (by spontaneously giving away vast amounts of money) immediately before a significant recession.
What would be the simplistic prediction of the impact on:
- Interest Rates
over the following, say, 20 years?
Obviously such situations are incredibly complex and there are numerous ways that the outcomes could be changed. But I want to get a feel for what the "base line" or "default" expectation might be.
I wrote it up and was about to tag it with
economics when I saw the notes on that tag.
This definitely isn't speculative, since I'm asking about what standard expectations would be, not what will actually happen.
But the tag also asks that questions pertain to personal situations. I am asking in order to apply the answer to my personal situation ... but the question seems decidely not-individual to me.
Am I right in thinking this would be closed as off-topic? And is there an alternative SE? The "Economics" one seems more like an academia space, and I'm not sure that this Q would be welcomed there?