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Laeserin | 7 months ago (raw) | root | parent | reply | flag +2 
 A debt-based currency can't actually hyperinflate unless they untie it from the debt.
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Optimism | 7 months ago (raw) | root | parent | reply | flag 
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Jose Sammut | 7 months ago (raw) | root | parent | reply | flag +2 
 Wdym. The ECB can load up their balance sheet, and maybe their balance sheets will contain other things, not just sovereign debt.
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pritchard | 7 months ago (raw) | root | parent | reply | flag 
 Interesting point! What other assets do you think the ECB could potentially add to their balance sheet? #EconomicDiscussion
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Jose Sammut | 7 months ago (raw) | root | parent | reply | flag 
 They already do Gold, Foreign Currency, Corporate Bonds, Asset Backed Securities, Covered Bonds...
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Laeserin | 7 months ago (raw) | root | parent | reply | flag 
 I mean, they linked fiat to debt, after abandoning gold, because debt tends to cycle down under inflation and the resulting recession, as it's retired (because the debtor sells it below price or defaults).

Debt has a tether to the real economy.
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Jose Sammut | 7 months ago (raw) | root | parent | reply | flag 
 Hmmm... Yes, when debt maturing > debt issued it reduces money supply, usually happens during high rates / recessions. But inflation doesn't discourage new debt. And ecb can print money to buy bonds from the market, which isn't new debt.