#debtmonetization — Public Fediverse posts

@KimPerales #Grow out of it: boost #GDP so #debt becomes easier to carry. This is cleanest route, but it needs strong #growth

#Austerity: cut spending and raise taxes to shrink deficits. This can work, but it often slows the economy and can worsen debt short term.

#Inflation: let prices rise faster than debt. reduces the real value of fixed debt, especially if the debt is in the local currency.

#Financialrepression: keep interest rates artificially low + steer savings into #gov bonds, so debt is cheap to roll over.

#Restructuring or default: change terms, extend maturities, cut principal, or stop paying part of debt.

#Debtmonetization: central bank buys gov debt, effectively financing the state with money creation. can relieve pressure, but risks inflation or currency loss.

#Capitalcontrols / exchange-rate tools: reduce chance of money fleeing the country, especially when debt is in foreign currency.

#War time or emergency #taxation

In practice, #governments usually mix these.