Monetizing debt is a very controversial subject but on this website we are going to show you the negatives and positives on the matter. As you dig deeper into the subject you are probably wondering what monetizing debt is. The textbook definition is:
“A way of paying off or otherwise financing debts accrued by a government by that same government or its independent central bank, in order to print more money and increase the monetary base. This can be done by issuing new bonds and/or selling domestic debt to foreign countries. Also called monetization.”
The textbook definition is a bit more difficult to understand but in simpler terms, when the Federal Reserve buys from the U.S Treasuries this is called monetizing debt. This does cause inflation but if planned correctly this can be good for our country instead of bad. Unplanned inflation can do much damage to our country which is we usually try to plan for it as best we can.
Throughout this site you will be able to look further into the detail of monetizing debt and be able to grasp the firm understand of the topic. We will also take a look at what inflation is as well how it works and how it can benefit or hurt us. The last thing we will look at is debt and how this affects your life in so many different ways.
By the end of reading this entire article you will be able to understand and lecture someone else o the subject.