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Countries can and have defaulted on debts issued in their own currencies. If you printed your way out of debt that would be a default in all but name. You would
by holymacaral 8y ago
Countries can and have defaulted on debts issued in their own currencies. If you printed your way out of debt that would be a default in all but name. You would cause a collapse of credit and a collapse in confidence in the currency itself.
- CPLX 8y ago> Countries can and have defaulted on debts issued in their own currencies. Really? How? > If you printed your way out of debt that would be a default in all but name. Oh, right, actually they don't. So in fact it is actually impossible to default on debt in your own currency and you're admitting as much. > You would cause a collapse of credit and a collapse in confidence in the currency itself. Right. And a reduction of value of a currency is also called inflation. Which is pretty well accounted for within the discussion.
- mikhailfranco 8y agohttps://scholar.harvard.edu/files/rogoff/files/forgotten_history_of_domestic_debt.pdf https://scholar.harvard.edu/files/rogoff/files/forgotten_his...
- CPLX 8y agoI quickly read, digested, and mentally analyzed the 52 page whitepaper you posted, and am ready to resume the argument from the exact same point of view.
- jhundal 8y agoThis paper was discredited. It could not be replicated using publicly available data and it was eventually found that there were large scale computational errors: https://www.bbc.com/news/magazine-22223190 https://www.bbc.com/news/magazine-22223190
- mikhailfranco 8y agoSorry, posted the wrong Reinhart paper, should be this one of course: https://www.nber.org/papers/w15815.pdf https://www.nber.org/papers/w15815.pdf