3 ms·
I have; it usually is characterized by a collapse in real output (or loss of a war), accompanied by madly buying foreign currency at increasingly poor rates to
by kaonashi 12y ago
I have; it usually is characterized by a collapse in real output (or loss of a war), accompanied by madly buying foreign currency at increasingly poor rates to pay off foreign debt.
- Retric 12y agoLarge amounts of Foreign debt is a result of an inability to sell bonds in your currency. The US has a long history of loan repayment but we still dealt with high levels of inflation fairly recently. As in There where US treasury bonds issued at 17%. Which was vary close to runaway hyperinflation. At current interst rates our debt is sustainable but bump that to 10+% for to long and it would distroy our economy.
- kaonashi 12y ago> As in There where US treasury bonds issued at 17% That has much more to do with large-scale experimentation than exogenous factors. > At current interst rates our debt is sustainable but bump that to 10+% for to long and it would distroy our economy. Without a peg/convertibility the central bank will always have the last say on bond rates[1]. [1] http://www.cfeps.org/pubs/wp-pdf/WP53-Fullwiler.pdf http://www.cfeps.org/pubs/wp-pdf/WP53-Fullwiler.pdf