A politician has studied the balance sheet of a central bank in her country, and determined that
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A politician has studied the balance sheet of a central bank in her country, and determined that the central bank holds 4 trillion freebies (the currency of the country) worth of bonds issued by government of the country. The politician proposes that the central bank should just cancel these bonds, releasing the taxpayers from having to pay the debt. What will be the effects of this policy proposal, if it is implemented?
Related Book For
Accounting Principles Part 1
ISBN: 978-1118306789
6th Canadian edition
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Kinnear, Joan E. Barlow
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