Not sure how to look this up historically. I was having trouble Googleing this.
When the U.S. federal government has expanded it's debt drastically in a short period of time say 4-8 years how has that effected the stock market? How has it effected global markets? How has it effected bond markets? in what time period has it effected the markets? did it effect them during that period or did it happen after?
What happened with Tbills?
How were small businesses effected?
how were international businesses effected?
Thanks much anyone who has the time to take a stab at these. Just doing a little research. Pretty please cite your work if possible. If you have a website to go to where i could look all this info up a reference would be much obliged.
The federal government has been expanding it's debt and debt/GDP ratio since about 1980. All sorts of outcomes have occurred in the meantime:
T-bills paid pitiful returns the entire time.
The high inflation of the 1970s was subdued and never really came back.
Businesses enjoyed lower taxes, as the cost of government was sandbagged into debt. Likewise, the stock market went on a tear.
International businesses continued to use the dollar as the unit of international trade, thanks to its stability and relatively low inflation.
Bonds have offered lower and lower yields since 1980, which tended to increase the value of existing issues. Now we're close to zero.
For a detailed/somewhat tedious read on government debt and the commonality of defaults, even at modest debt/GDP ratios, read "This Time is Different" by Reinhart and Rogoff.