How does country debt work if the country prints its own currency (ex USA). Why are people so concerned about it?
In: Economics
Inventing more currency to pay off debt is one way to get rid of it, but doing that can seriously devalue the currency. Because, in very general terms, the more of something there is on the market, the less it is worth. Creating a few trillion extra dollars makes all the dollars in circulation worth less.
Mostly people who are worried about sovereign debt don’t have a clue how it works, and assume that the country must “owe” some other country money like you or I would owe a bank.
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