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)
“I was thinking what an interesting concept it is to eliminate the writer from the artistic process. If we can just get rid of these actors and directors, maybe we got something here.”
—Michael Tolkin, U.S. screenwriter, and Robert Altman. Griffin Mill (Tim Robbins)
“It is impossible to dissociate language from science or science from language, because every natural science always involves three things: the sequence of phenomena on which the science is based; the abstract concepts which call these phenomena to mind; and the words in which the concepts are expressed. To call forth a concept, a word is needed; to portray a phenomenon, a concept is needed. All three mirror one and the same reality.”
—Antoine Lavoisier (1743–1794)