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Can the government of a country print money to repay an outstanding loan?
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[QUOTE="Bookwormlux, post: 231011, member: 25193"] It is not uncommon to see a lot of countries that are struggling seeing to it that they take loans from other successful countries who are willing to support them . This is usually based on an agreement and the amount of money would be repaid whenever they stated time is due for the money to be paid back . The problem is that, there are a lot of poor countries that have been taking loans from different countries , and it could take them a generation before being able to repay everything that they're collecting from other countries . This is especially common in countries that are known for gross level of corruption . Whereby the leaders of this country usually do not spend the money obtained on infrastructural development, but use the money for their own personal and selfish needs . I am thinking if it is going to be possible for countries that have found themselves in this type of situation to ever get out of the situation , by making sure they print out money and then use it to repay those countries that they are owing . Is this something that could be considered illegal? Do you think there is anything wrong in this at all ? [/QUOTE]
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Can the government of a country print money to repay an outstanding loan?
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