Bonds

Can States Issue Bonds?

Roads, bridges, airports, schools, hospitals, water treatment facilities, power plants, courthouses, and other public structures are examples of significant, expensive, and long-term capital projects for which state and municipal governments issue bonds. State and municipal governments can, and do, pay for capital investments using current income, but borrowing allows them to spread the expenses across […]

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Can Taxes And Bonds Finance Government Spending?

After carefully considering the difficulties of reserve accounting, it is argued that tax and bond proceeds are theoretically incapable of supporting government spending, and that modern governments finance all of their spending by directly creating high-powered money. Are taxes used to fund government spending? To meet its spending priorities and pay important public services such

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