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@rvkennedy @shiri @funcrunch @JorgeStolfi @kcoyle @immibis
Governments can and do issue currency without issuing corresponding liabilities. Selling bonds is just a crude way of constraining demand (by sequestering money) that might otherwise be created by currency issuance. But if a central bank anticipates an expansion in the goods and services for sale in its currency, there is no need to constrain demand.
@rvkennedy @shiri @funcrunch @JorgeStolfi @kcoyle @immibis
Sometimes central banks just don't issue bonds (cf various bailouts). Sometimes they ration (cf WWII). Sometimes they do a mix of all three (issuance, nonissuance, rationing).