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If a government prints its own currency there's not even a theoretical limit to the total amount it can borrow. There is a limit to the total rate of governmen
by crdoconnor 8y ago
If a government prints its own currency there's not even a theoretical limit to the total amount it can borrow.
There is a limit to the total rate of government spending - spending beyond the rate of the economy's ability to produce - which causes hyperinflation. That is unrelated to the deficit though (theoretically it could even happen in surplus e.g. if you destroyed all your factories and farms).