• surewhynotlem@lemmy.world
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    1 year ago

    It’s tying up capital that could be used elsewhere

    I’m not sure that’s the case when you’re the government and can and do print money. Not every rule of finance applies to the entity that gives credibility to the currency in the first place. This is also why the concept of governmental debt is much less meaningful than the concept of individual debt.

    • zephyreks@programming.dev
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      1 year ago

      The government is limited in monetary policy by inflation.

      Of course, the Petrodollar doesn’t really have this problem, but it ends up exporting inflation around the world.