Which Households Are Most Exposed to the Inflation “Tax”?
Chiang, Yu-Ting; LaBelle, Jesse (2023-06-27)
The federal government benefits from unexpected bouts of inflation since the real value of its debt falls. However, this also hurts its debtholders.
On the Economy

Journal Article
The Long-Run Fiscal Outlook in the United States
Wilson, Daniel J.; Meisenbacher, Brigid C. (2024-02-12)
The federal debt as a share of U.S. GDP is nearing its historical high from World War II. This ratio fell sharply over the three decades after World War II due to a primary surplus, rapid economic growth, and low interest rates. Projections for the coming three decades point to a persistent primary deficit without major reforms to mandatory spending programs or higher taxes. Thus, the rates of interest and economic growth will be crucial for determining the long-run debt-to-GDP ratio’s evolution.
FRBSF Economic Letter , Volume 2024 , Issue 04 , Pages 5

Journal Article
What Would It Cost to Issue 50-year Treasury Bonds?
Christensen, Jens H. E.; Lopez, Jose A.; Mussche, Paul (2021-11-08)
The longest-term U.S. Treasury bonds that investors can buy mature in 30 years. Some other countries offer up to 50-year government bonds. Examining these foreign bond markets and extrapolating U.S. Treasury yields to evaluate such longer-term options suggests that the extra costs of introducing 50-year bonds relative to conventional 30-year bonds are likely to be small on average. Because the U.S. fiscal deficit remains substantial, such longer-term debt instruments could provide an attractive opportunity to finance the growing debt in a sustainable way.
FRBSF Economic Letter , Volume 2021 , Issue 29 , Pages 05