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A nation that borrows in its own currency can’t be forced to default.
by lokar 7mo ago
A nation that borrows in its own currency can’t be forced to default.
- inaros 7mo agoTechnically true, and completely meaningless. Can't default just means the government can print worthless paper instead. Weimar Germany, Zimbabwe, and Argentina all borrowed in their own currencies...
- lokar 7mo agoAll three of them had major factors going on other than increasing the money supply. And it's the circulating money supply vs the size of the economy that matters, not money creation. For example, you can create a lot of money with no inflation, if you also remove a lot of money, eg via taxation.