UK Gov debt and the gilt market (why do they need it?)

because that's the fiscally discredited solution of the 70s that caused 20% pa inflation

tim

ngland to print off the money and*give* it to the Gov"? Then the Gov cou ld use this money without the public being taxed to repay the debt + inte rest.

That's called devaluation and it results in people not trusting the currency. (Although it has also happened recently under the euphemism of "quantitative easing".)

Incidentally, most people on pension annuities rely on the interest and stability of gilts. They would be particularly badly hit by the inflation caused by devaluation.

We also get into money supply figures here. Governments don't actually hand over paper money when they buy things. A description of how this is

done for QE is in

Note that the aim of quantitative easing is not to allow increased government spending, but to encourage spending in the private sector.

Because the UK's currency (total) is worth $1trn. Let's say that means £1 = $1.50

If we print 10% more currency, our total is still $1trn. But that means that £1 now = $1.35

Let's say we print 50% more. Our total is still $1trn. £1 now = $1.

If every other currency remains static compared to the $, everything we import is now a LOT more expensive, in £, so we're back where we were, globally speaking. Except there's less confidence in the economy of this country.