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> 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
by 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