[A-List] RE: Sabri's questions

[Sabri Oncu]

Gary:

> I think the many responses DID answer your questions.

No Gary! 

My questions below are still unanswered:

1) If governments can create money/credit at will, and I agree with this
proposition, why do over-indebted countries such as Argentina, Turkey and
the like not choose that path but continue to keep borrowing both
domestically and internationally?

2) When government creates money at will and hence leads to an increase in
the quantity of money, would there not be inflation unless the resulting
excess demand is met by increased supply? Consequently, are there not limits
to the amount of money the government can create?

Best,

Sabri