it's funny that we're all learning to avoid debt spiral, however at the same time it's exactly what our goverments are doing
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it's funny that we're all learning to avoid debt spiral, however at the same time it's exactly what our goverments are doing
Governments and central banks can inflate their debts. Politicians often change every 4-5 years, the problem affects future generations. But state (soverign) debt can increase economic growth, so the governments mostly have a good excuse.
If, in the near future, the central banks can’t push up economic growth anymore (with low interest rates and money printing), the governments will try it. Monetary policy will be very likely replaced by fiscal policy, resulting in even more debt. (fiscal policy=>government spending and incomes, taxation)