4 ms·

Argentina currency was pegged to the Dollar, so not so sovereign. Also, a lot of their public and private debt was denominated in foreign currency. Again, not

• conanbatt 11y ago
  The constant inflation made it only possible to issue bonds in a foreign currency. Sustained inflation does not solve public debt, because it also devalues the taxes the government gets back, creating a negative feedback loop of deficit and inflation (argentina's path in the last 10 years)
  • RobertoG 11y ago
    "The constant inflation made it only possible to issue bonds in a foreign currency." Why is that? I think the problem in this discussions is that every side come from a different conception about what is and where money comes from. A sovereign govern with a floating currency don't need financing from private sources in its own money. That's a simple fact about how money is really created. If we don't agree in this first, all posterior discussion is pointless.