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The Rationale for Consolidating Monetary Base into Government Debt
A financial analyst argues that when a government-owned central bank creates new base money (currency and reserves), it is functionally equivalent to the government issuing a zero-interest, perpetual liability. Explain the reasoning behind this argument, focusing on the relationship between the government and the central bank.
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Economics
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Ch.6 The financial sector: Debt, money, and financial markets - The Economy 2.0 Macroeconomics @ CORE Econ
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