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why the government can't simply cancel its pandemic debt by printing more money

  • Written by Ananish Chaudhuri, Professor of Behavioural and Experimental Economics, University of Auckland
why the government can't simply cancel its pandemic debt by printing more moneywww.shutterstock.com

With the government borrowing heavily to fund its pandemic response and recovery, it has been suggested it could simply cancel its debt by printing more money. That sounds like an attractive idea, but it is one that would have seriously adverse consequences.

Derived from “modern monetary theory” (MMT), the...

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