Government Debt
Subject: Finance | Topics:

Government debt is one process of financing government actions, but it is not the only technique. Governments can also make money to monetize their debts, thereby removing the need to pay interest. But this observe basically reduces government interest expenses rather than truly canceling government debt and can result in hyperinflation if used unsparingly. Governments generally borrow by issuing securities, government bonds and bills. Less creditworthy countries occasionally borrow straight from a supranational association or global financial institutions.

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