Re:The Chinese Government Likely Borrowed More than the US i...
by crdoconnor on Monday July 16, 2018 @10:33AM
(#17541538)
If a government prints its own currency there's not even a theoretical limit to the total amount it can borrow.
There is a limit to the total rate of government spending - spending beyond the rate of the economy's ability to produce - which causes hyperinflation. That is unrelated to the deficit though (theoretically it could even happen in surplus e.g. if you destroyed all your factories and farms).
There is a limit to the total rate of government spending - spending beyond the rate of the economy's ability to produce - which causes hyperinflation. That is unrelated to the deficit though (theoretically it could even happen in surplus e.g. if you destroyed all your factories and farms).