#FiatMoney enables governments to #finance #wars easily through unlimited printing, low borrowing costs, and monetary policy manipulation.
During WWI, England issued bonds, facilitated by the Bank of England purchasing over 50% when public investment was lacking.
This strategy allowed the government to obtain funds without widespread public support. Fiat money's flexibility allows for currency devaluation to boost exports, indirectly funding wars. Its detachment from physical commodities like gold permits unchecked printing, risking inflation.
In summary, fiat money's characteristics make it a convenient tool for governments to finance wars, potentially undermining economic stability and prosperity in the long run.
What could be a solution to keep governments in check?