"When governments intentionally do this, they devalue existing stockpiles of fixed income cash flows of anyone who is holding assets based in that currency."Read on Twitter
Here are other recent tweets from Thomas Massie:
"When government deficits are financed through debt monetization the outcome is an increase in the monetary base, shifting the aggregate-demand curve to the right leading to a rise in the price level."Read on Twitter
"It is prohibited in many countries, because it is considered dangerous due to the risk of creating runaway inflation. To prevent inflation getting out of hand, central banks often keep a close eye on the Consumer Price Index."Read on Twitter
"Debt monetization or monetary financing is the practice of a government borrowing money from the central bank to finance public spending instead of selling bonds to private investors or raising taxes."Read on Twitter
Alerts Sign-up