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You can't inflate away government debt, not meaningfully, because it's almost always going to be at a rate higher than inflation by construction.
by sudosysgen 3y ago
You can't inflate away government debt, not meaningfully, because it's almost always going to be at a rate higher than inflation by construction.
- wholesomepotato 3y agoYes, but also - they lie about the inflation and force the public to hold the bonds anyway (aka. financial repression, yield curve control).
- cwalv 3y agoExactly. YCC is already happening in Japan; it's inevitable here too. The only alternative is outright default, which never happens when the debt is denominated in currency the debtor can print.