from Dirk Ehnts, Econoblog101
I wrote the tweet below because I thought that it would be really interesting for students to ask that question. They would find out what it is that determines the price of a government bond. Little did I know that many people would be interested in my view of the issue. So, by popular request, I am presenting my take. (It is based on my book on money creation in the Eurozone [euro ] and a paper in the Eurasian Economic Review [no paywall] with Michael Paetz.)
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