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:
“One concept corrupts and confuses the others. I am not speaking of the Evil whose limited sphere is ethics; I am speaking of the infinite.”
—Jorge Luis Borges (1899–1986)
“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)
“the full analysis of the notions of saying something and understanding what one said inevitably involves a concept which, as I will show in detail, essentially corresponds to the Cartesian idea of thought.”
—Zeno Vendler (b. 1921)