Concept
Internal debt owed by a government (money a government borrows from its citizens) is part of the country's national debt. It is a form of fiat creation of money, in which the government obtains cash not by printing it, but by borrowing it. The money created is in the form of treasury securities or securities borrowed from the central bank.
These may be traded but will only rarely be spent on goods and services. In this way, the expected increase in inflation due to the increase in national wealth is lower than if the government had simply printed the money and increased the more liquid forms of wealth (i.e., the money supply).
Read more about this topic: Internal Debt
Famous quotes containing the word concept:
“The new concept of the child as equal and the new integration of children into adult life has helped bring about a gradual but certain erosion of these boundaries that once separated the world of children from the word of adults, boundaries that allowed adults to treat children differently than they treated other adults because they understood that children are different.”
—Marie Winn (20th century)
“The nearer a conception comes towards finality, the nearer does the dynamic relation, out of which this concept has arisen, draw to a close. To know is to lose.”
—D.H. (David Herbert)
“Modern man, if he dared to be articulate about his concept of heaven, would describe a vision which would look like the biggest department store in the world, showing new things and gadgets, and himself having plenty of money with which to buy them. He would wander around open-mouthed in this heaven of gadgets and commodities, provided only that there were ever more and newer things to buy, and perhaps that his neighbors were just a little less privileged than he.”
—Erich Fromm (1900–1980)