Subject: Re: OT - De-dollarization
Car­men Rein­hart, former World Bank chief eco­nom­ist has written that after the second world war Amer­ica and Bri­tain slashed their debt by adopt­ing a subtle ver­sion of growth-and-infla­tion mix known as 'fin­an­cial repres­sion'. This refers to the idea that if the infla­tion rate in a coun­try stays slightly higher than the interest rate paid on long-term gov­ern­ment bonds, debt will fall because bonds are loss-pro­du­cing in real terms. There is a good chance this will be repeated soon.