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You could, but how does that differ in practise from selling the bond in the first place? Apart from increasing the gearing of your financial system, that is.

- Jake

Friends come and go. Enemies accumulate.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Sun Jun 6th, 2010 at 04:52:41 PM EST
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If the only option were to sell the bond for existing money instead of monetizing it the overall amount of money in the system would stay unchanged. That would supposedly limit inflation.
by generic on Sun Jun 6th, 2010 at 06:19:32 PM EST
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