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That situation is not rather unique at all. Most developed nations issue debt in a currency controlled by their central bank, with the notable exception of the
by khuey 14y ago
That situation is not rather unique at all. Most developed nations issue debt in a currency controlled by their central bank, with the notable exception of the Eurozone.
- encoderer 14y agoYour point is a little misleading I think. How big is the list of "most developed nations" after you remove the US and Euro Zone from the list? Yes, every country CAN issue national debt. But issuing sovereign debt is more common largely because investors prefer it. Either way, I didn't mean to sound misleading by calling it "rather unique." Thanks for helping me clarify.
- kragen 14y agoJapan, South Korea, Taiwan, Singapore, England, Russia, Canada, Australia, Switzerland, Iceland, Israel, Sweden, Norway, Denmark, New Zealand, and arguably PRC, Brazil, Argentina, Turkey, India, Mexico, Indonesia, Qatar, and Chile, are all developed nations not in the US or Eurozone. You are, however, correct that most of these countries issue their debt in US dollars ("sovereign debt") rather than their national currencies.