Description
In 2010, financial markets were shaken with the prospect that Greece might default on its national debt, yet one often reads that nations are not at risk of defaulting on their debt because they can always “print” money. In what sense is this true? If true, then why do national treasuries sell bonds?
Explanation & Answer
Attached.
Running head: NATIONAL DEBT
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National Debt
Name
Institutional Affiliation
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NATIONAL DEBT
National Debt
There is the notion that nations are not at risk of defaulting on their debt because they can
always print money. The ability of a government to print money has the risk of increased
inflation or currency depreciation.However,in such a situation, default would happen slowly thus
giving the investors...