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>False. I think you're both right. When you can print your own currency it is literally impossible to default on your debts, unless you choose to. Often time
by hnnewguy 12y ago
>False.
I think you're both right. When you can print your own currency it is literally impossible to default on your debts, unless you choose to.
Often times defaulting has benefits to the debtor, like the Russians escaping from ridiculous fixed exchange rates in 1998.
- Tyr42 12y agoI'd take another look, didn't he say that there exists inflation adjusted debt, which I don't think you can print money to get out of debt.
- hnnewguy 12y ago>there exists inflation adjusted debt Because they decided to issue it, mainly to instill confidence in a currency with a history of big inflation. But this isn't the norm. It doesn't change the argument that it is impossible to be unable to "pay back" something that you have an infinite supply of.