Perhaps it would best to think about counterexamples. A few years ago, Israel had what many called "hyperinflation." Was it due to an effort (conscious or unconscious) to get out of debts denominated in non-Israeli currency? how about Nationalist China after WW2?
On Thu, Apr 12, 2012 at 7:39 PM, nathan tankus <[email protected]> wrote: > "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 -- Jim Devine / "In science one tries to tell people, in such a way as to be understood by everyone, something that no one ever knew before. But in poetry, it's the exact opposite." -- Paul Dirac. Social science is in the middle.... and usually in a muddle. _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
