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No country with its own money ever needs to get the IMF involved. Largely because the only place the IMF can get your money is from you. Currencies are public
by neilwilson 2y ago
No country with its own money ever needs to get the IMF involved.
Largely because the only place the IMF can get your money is from you.
Currencies are public monopolies.
The problems always arise when a state starts issuing state backed liabilities in other denominations - as there is no way for a state to absolve itself of that debt without paying it back. It becomes a debtors prison.
- riffraff 2y agoEven if you have your own money you need stable foreign currency to operate. It's not like you just choose to issue debt in foreign denomination cause it's fun.
- neilwilson 2y agoYou don't. There is no requirement for the state to get involved in other people's money. That's for the private sector to sort out - largely because they can go bankrupt and wipe out the debt when things inevitably go wrong.