(A) existing debt; (B) interest payment

(A) seigniorage; (B) existing debt

(A) government bonds held by foreigners; (B) interest payment

(A) seigniorage; (B) interest payment

GDP in the denominator of the ratio will fall too

.he clearly confused seigniorage with the inflation tax which is why his recommended policy would fail

.this might help to stabilize the debt/GDP ratio but it definitely will give you inflation that is exploding

.this is equivalent to defaulting on the sovereign debt which only postpones the debt to a later period

25% = (1-3/4) times 100

57% = 100 / (1+ 3/4)

75% = (3/4) times 100

133% = (4/3) times 100

seigniorage

the inflation tax

cost of inflation

unanticipated default

primary budget defici

cyclically-adjusted budget deficit

exogenous budget deficit

smoothed budget deficit