All Questions
3 questions
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Why don't Governments do away with the optics of taking on debt against new currency, and instead issue a limited currency every year (say 5% of GDP)?
Governments engage in the optical illusion of taking on debt against issued currency.
The debt is effectively owed by the Government to itself.
The value of the debt is completely controlled and ...
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Oliver Hart said that financing deficits by printing money can lead to hyperinflation "once the economy is close to full capacity". What does he mean?
In response to a poll on Modern Monetary Theory, Nobel Laureate Oliver Hart said that Governments financing deficits by printing more money "can quickly lead to inflation or even hyperinflation ...
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For stability, is there a limit to the sovereign debt that a Government owes to itself against issued fiat currency?
Looking beyond the optical illusion of Governments owing debt to Central Banks, Governments effectively owe themselves the sovereign debt created against issued fiat currency.
By definition, there ...
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