No nation needs default on debts that call for repayment in its own currency.

Question

Quizplus · Accepted Answer

If a nation has the power to issue currency, it can always repay debts that are denominated in that currency by simply printing more money. However, this approach may lead to inflation and a loss of confidence in the currency, which can have other negative consequences. It is generally considered more responsible for nations to manage their debts and deficits to avoid default and maintain the stability of their currency.

No Nation Needs Default on Debts That Call for Repayment