Low U.S. Treasury yields despite profligate fiscal behavior reflect investor belief that the U.S. 'will get its act together' as it has before, expectations of a slow-growth low-inflation period, and a possible 'this time is different' psychological bias; the underlying inconsistency is not resolved in any obvious way, creating substantial uncertainty.

causalpending

Speaker

John Taylor

Evidence Quote

there can be inconsistent sout inconsistencies out there that have to do with the psychology of how people price assets or what they think about the future and to me the inconsistency is not resolved at this point

Source

John Taylor on the State of the Economy 07/19/2010EconTalk
Created: 6/15/2026, 9:17:28 AM

My Notes

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