>Because when you print money you don't pay interest to anyone so instead of borrowing you could just jump the middleman and just print he is printing anyways.
>Because when you print money you don't pay interest to anyone so instead of borrowing you could just jump the middleman and just print he is printing anyways.
While that's true technically, when governments borrow from the central bank they tend to roll over the debt instead of paying it back, so the interest is never really paid.
The big advantage to borrowing from the central bank is the average person thinks you can only borrow deposited money and doesn't realize what's happening.
>Because when you print money you don't pay interest to anyone so instead of borrowing you could just jump the middleman and just print he is printing anyways.
While that's true technically, when governments borrow from the central bank they tend to roll over the debt instead of paying it back, so the interest is never really paid.
The big advantage to borrowing from the central bank is the average person thinks you can only borrow deposited money and doesn't realize what's happening.