Brief note on Lack of Land in “Models of Secular Stagnation”

I see there is a kerfuffle about not including land in the Eggertson and Mehrotra’s “Models of Secular Stagnation“, which should raise the equilibrium rate to be negative. I want to make two comments here as a sticky:

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Brief note on Lack of Land in “Models of Secular Stagnation”

Money Financed Deficits Have the Same Future Tax Obligations As Bond Financed Deficits

Over at Worthwhile Canadian Initiative, Nick Rowe wonders how much of a deficit would need to be money-financed as opposed to bond-financed. I say it doesn’t matter how you finance the deficit, what matters is the time path of interest rates (which is independent of how the deficit is financed).

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Money Financed Deficits Have the Same Future Tax Obligations As Bond Financed Deficits