Inflating the Debt Away

Pierre Lemieux

Chapter Chapter 9 in The Public Debt Problem, 2013, pp 127-142 from Palgrave Macmillan

Abstract: Abstract In a way, everything is more complicated than it appears, for we always find new mysteries and new questions in what we think we knew. In another way, everything is simpler than it looks like, for the general features of any complex phenomenon are usually explainable with a simplified representation of reality, called a “model.” Monetary theory and policy are complex topics, which are approached by economic theories based on such models. We won’t dwell deep into these models for we need to understand only two relatively simple points: increasing the money supply creates inf lation and inf lation reduces debt obligations. We’ll then be in a position to look at what the US government can do in this regard.

Keywords: Interest Rate; Central Bank; Money Supply; Public Debt; Money Stock (search for similar items in EconPapers)
Date: 2013
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-137-31302-7_9

Ordering information: This item can be ordered from
http://www.palgrave.com/9781137313027

DOI: 10.1057/9781137313027_9

Access Statistics for this chapter

More chapters in Palgrave Macmillan Books from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().