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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
by 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.