Rising borrowing costs for heavily indebted governments and increasing strains in sovereign bond markets are reviving a once-taboo question for investors and policymakers: whether central banks could eventually be called upon to help governments manage their growing debt burdens.
According to Reuters, the issue of so-called fiscal dominance is expected to be among the key topics discussed by Federal Reserve officials, economists and central bankers at the Fed's annual gathering in Jackson Hole, Wyoming, this week. The debate comes as governments across major economies face rising debt levels and higher interest costs.
