"where fiscal sustainability is in doubt, and the government has insufficient resources to recapitalise the CB, there is the risk that trust in both government debt and the fiat money in which it is denominated could break down simultaneously"
@JohnHCochrane @masuch_klaus
RT @BIS_org: #CentralBanks can operate with negative equity, but new research on the Bank of Amsterdam shows that there are limits; fiscal backing is key to ensure #Trust in #FiatMoney https://ww…

🐦🔗: https://n.respublicae.eu/lugaricano/status/1616026602214723588