Re:The Worst Hyperinflations in History: Hungary in 1946 (2014)
by jganetsk on Wednesday February 14, 2018 @04:53PM
(#16379806)
Causality is backward here, really. Government debt and money are effectively the same thing. Growing government debt is growth in the money supply, which can lead to inflation.
Governments don't try to devalue sovereign debt, they try to pay off their foreign debts. For that, they buy up all foreign currency in the market, sending the value of their currency plummeting.
Governments don't try to devalue sovereign debt, they try to pay off their foreign debts. For that, they buy up all foreign currency in the market, sending the value of their currency plummeting.