The MMT Podcast with Patricia Pino & Christian Reilly cover image

#126 Dirk Ehnts: How Banks Create Money

The MMT Podcast with Patricia Pino & Christian Reilly

CHAPTER

What Is the Difference Between Private Debt and Government Debt?

Private debt is something completely different from government debt. When the government spends, every single pound increases the public debt. And if you want to reduce your public debt, there's no way that you, as the government, can make payments to reduce its level. So it's not a good concept at all.

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