THE LIQUIDATION OF GOVERNMENT DEBT

https://imf.org/external/np/seminars/eng/2011/res2/pdf/crbs.pdf

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Good to see you back!

Dylan took a break from the bad bird app to post on the good bird app.

Scammers

Basic math at the end if the day. Arithmetic as old as time…

I’m trying to see if I can understand this correctly, feel free to help out.

My brain can’t seem to figure out how the “neg real rates”erodes the debt. It seems to be something to do with inflation, given they state a “healthy dose” of it helps. So inflating money supply erodes debt somehow?? Help I’m tail spinning!

But I do understand how low nominal interest rates would help when servicing debt. I now understand the terms “negative real interest rates” and how it’s derived. Just missing something.

Thanks in advance