Since the early 2000s, local-currency debt (mostly traded in domestic markets) became a growing and important source of funding for several governments in emerging market economies. Despite their impressive growth, many domestic sovereign debt markets maintain a captive domestic audience that facilitates direct credit to government. This represents a form of financial repression 1, which can lead to a crowding out of private credit.
A research paper discovers the central banking bails out government at the expense of private sector. Proving the necessity of sandbox. Also proving, yet again, immigration is about entitlement slavery.
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