"In principle, I see no reason why you cannot have hyperinflation with debts denominated in domestic currency. Imagine a single state issuing a global currency and public bonds. No foreign debt there, all debt is domestic. Isn't it conceivable for the debt and currency issued by this state to depreciate at once?"
I don't know what you mean by depreciate. it is of course **conceivable** but it seems intensely unlikely. the only scenarios i can imagine is if a state starts increasing it's deficit exponentially, way beyond full employment, a collapse in the ability of the state to collect taxes or an incredible fall in productive capacity. -- -Nathan Tankus ----------------------------------------------------------------------------------------------------------------------------------------------- _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
