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> debt is not necessary to finance a state that control its own floating currency It is if you wish to avoid runaway inflation. Even countries which have cast
by nybble41 8y ago
> debt is not necessary to finance a state that control its own floating currency
It is if you wish to avoid runaway inflation. Even countries which have cast off the fetters of the gold standard (or equivalent) have found that there are still limits to the rate at which they can issue currency. Moreover, once the implications sink in people just index prices (including wages and interest rates) to the expected rate of inflation and you're right back where you started.
- TheCoelacanth 8y ago> you're right back where you started That's kind of the point. Enforce taxes so that people have less money or print money and raise inflation so that the money people have is worth less, either way the real consideration is how much of the nation's productivity you are using, not how you are getting the money.
- vijayr02 8y agoTaxes don't cause people to have less money - they're purely a redistributive process