THE IMPACT OF SLOWING ECONOMIC GROWTH ON ITS ENERGY INTENSITY

Abstract

The article examines the US budget policy, reveals the reasons for the growth of public debt. It is emphasized that, despite the annual persistence of the budget imbalance and the ever-growing public debt, the US economy is gradually emerging from the crisis caused by COVID19. The impossibility of a default in the United States with a very significant public debt can be explained by the peculiarity of the effective mechanism of the US Federal Reserve for the implementation of monetary policy. The financial regulator can issue dollars at any time by buying government bonds. In other words, the United States has the ability to borrow money and repay it in the national currency. The US economic policy is increasingly influenced by the Fed by changing the volume of the money supply through transactions with Treasury bonds. In recent years, there has been a weakening of interest on the part of foreign investors in the acquisition of US debt securities. The presence on the US debt market of such leading financial players as China, OPEC countries, Russia has decreased. This is largely due to geopolitical factors, the situation on the world oil market, and fluctuations in national exchange rates. It is concluded that the influence of the Fed on the economic processes taking place in the current conditions of the development of the world economy is growing.