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The government doesn't need to immediately borrow 1 EUR or have it on hand write you a check for 1 EUR, so the comparison holds.
by avar 9y ago
The government doesn't need to immediately borrow 1 EUR or have it on hand write you a check for 1 EUR, so the comparison holds.
- PeterisP 9y agoThey actually do, governments don't have the power to issue euros, only ECB does. Every EUR the government hands you (in EU not by a check, that's stone age, but on your account) is directly, immediately covered from their reserves (usually within 'their' central bank, who also can't issue new euros) or borrowed from someone, possibly the ECB.