People always point to Japan over the past several decades to justify the case for low and even negative yields forever... To take the leap from Japan's experience to assume that the Fed can keep printing money forever is a problem. It is very seductive to populist politicians, and that's one of the reasons it gets me really nervous. I debated Stephanie Kelton, who has become the face of modern monetary theory. She feels the choice between universal health care, forgiveness of student loans, and increased spending on infrastructure is a false one, because, in fact, you can have them all. It's a problem to assume that the U.S. has no budget constraints; it does.
~ Sonal Desai, 2020 Barron's Roundtable, January 6, 2020
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