Government debts



Government debt  (also known as public debt, national debt and sovereign debt )is the debt owed by a central government.

Government debt is one method of financing government operations, but it is not the only method. Governments can also create money to monetize their debts, thereby removing the need to pay interest. But this practice simply reduces government interest costs rather than truly canceling government debt, and can result in hyperinflation if used unsparingly.

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