Re:Economic costs of war
by Retric on Tuesday August 17, 2021 @06:25AM
(#28208249)
> You think fiscally sovereign nations need to borrow in their own currency
No, it can be quite beneficial. However, it’s more dangerous to borrow in foreign currency because exchange rates are outside of complete government control.
> You think government spending necessarily precipitates a currency crisis
No, the inability to borrow in their own currency is one possibility. Bad monetary policy is another, losing a war for existence is another.
No, it can be quite beneficial. However, it’s more dangerous to borrow in foreign currency because exchange rates are outside of complete government control.
> You think government spending necessarily precipitates a currency crisis
No, the inability to borrow in their own currency is one possibility. Bad monetary policy is another, losing a war for existence is another.