Post
Topic
Board Economics
Re: Why not just print dollars?
by
Medow
on 19/11/2017, 02:51:45 UTC
Dollars, like bonds, are liabilities of the U.S. government. It doesn’t matter to the government if the world holds $19 trillion in bonds and $1 trillion in cash, or $20 trillion in cash - it still costs the government nothing in real resources to create money (or bonds) and spend. And we haven’t borrowed in any real sense of the word since we were on the gold standard, when bond issuance was necessary.