Summary:
Zimbabwe nothing like the US currency-wise. The US is sovereign in its currency while Zimbabwe is not. Government is expected to fund its debt by “printing money”, issuance of Treasury Bills or increasing the central bank overdraft facility which are the main ways it has used in the past. However, American financial and economic literacy website, Investopedia, warns against this for countries that do not control their own monetary policy such is the case locally as government controls have caused the markets to run amok. “Economists, who adhere to modern monetary theory (MMT) argue that sovereign nations capable of printing their own money cannot ever go bankrupt, because they can simply produce more fiat currency to service debts. However, this rule does not apply to countries that
Topics:
Mike Norman considers the following as important:
This could be interesting, too:
Zimbabwe nothing like the US currency-wise. The US is sovereign in its currency while Zimbabwe is not. Government is expected to fund its debt by “printing money”, issuance of Treasury Bills or increasing the central bank overdraft facility which are the main ways it has used in the past. However, American financial and economic literacy website, Investopedia, warns against this for countries that do not control their own monetary policy such is the case locally as government controls have caused the markets to run amok. “Economists, who adhere to modern monetary theory (MMT) argue that sovereign nations capable of printing their own money cannot ever go bankrupt, because they can simply produce more fiat currency to service debts. However, this rule does not apply to countries that
Topics:
Mike Norman considers the following as important:
This could be interesting, too:
Jeremy Smith writes UK workers’ pay over 6 years – just about keeping up with inflation (but one sector does much better…)
Robert Vienneau writes The Emergence of Triple Switching and the Rarity of Reswitching Explained
Lars Pålsson Syll writes Schuldenbremse bye bye
Robert Skidelsky writes Lord Skidelsky to ask His Majesty’s Government what is their policy with regard to the Ukraine war following the new policy of the government of the United States of America.
Government is expected to fund its debt by “printing money”, issuance of Treasury Bills or increasing the central bank overdraft facility which are the main ways it has used in the past.
However, American financial and economic literacy website, Investopedia, warns against this for countries that do not control their own monetary policy such is the case locally as government controls have caused the markets to run amok.
“Economists, who adhere to modern monetary theory (MMT) argue that sovereign nations capable of printing their own money cannot ever go bankrupt, because they can simply produce more fiat currency to service debts. However, this rule does not apply to countries that do not control their own monetary policies,” Investopedia said.
Government hopes by fixing the exchange rate at the current US$1:$25, this may allow for cheaper borrowing. But, as the Zimdollar continues its freefall which has already forced the government to bring back the greenback, the benefits of a fixed exchange rate may not be realised....The Zimbabwe Daily
TATIRA ZWINOIRA