Can governments afford the debts they are piling up to stabilise economies?

Yes — It poses no inherent danger to states that issue their own currency

There are three real reasons.

First, a currency-issuing government never needs to borrow its own currency.

Second, it can always determine the interest rate on bonds it chooses to sell.

Third, government bonds help to shore up the private sector’s finances.

And don’t even let people try to drop the inflation scare on you. With such high unemployment in the US reaching Great Depression levels, and interest rates near zero, there is no great frenzy of people buying stuff to the point where prices are going through the roof. Inflation is nowhere on the radar.

Source: Can governments afford the debts they are piling up to stabilise economies?

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