Abstract
The theory is precisely the same when it comes to governments that borrow from the international markets. The acquired funds could have been transferred to the private sector or the public sector for investment and consumption, or they could have been plainly wasted in one way or another. Borrowing in the form of issuing bonds is no different to plain fiat money creation before the time of maturing. After that time the government has to pay back a multiple of the initial amount determined by the rate of interest on its bonds.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Author information
Authors and Affiliations
Corresponding author
Rights and permissions
Copyright information
© 2014 Springer International Publishing Switzerland
About this chapter
Cite this chapter
Tsionas, E.G. (2014). The Explosion of Public Debts. In: The Euro and International Financial Stability. Financial and Monetary Policy Studies, vol 37. Springer, Cham. https://doi.org/10.1007/978-3-319-01171-4_15
Download citation
DOI: https://doi.org/10.1007/978-3-319-01171-4_15
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-319-01170-7
Online ISBN: 978-3-319-01171-4
eBook Packages: Business and EconomicsEconomics and Finance (R0)