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donoval82: 10 months ago

If central banks can create their own money, let’s say in the case of a quantitative easing, then why is there sovereign debt

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Suzanee123: 10 months ago

Sovereign debts are there because they are risks that are taken by the government and when you take a risk it will either work out or not. The government cannot use the central bank for its own reasons. Every bunch of money that comes from central bank has to be accounted for. For more information, go to http://www.investinganswers.com/financial-dictionary/debt-bankruptcy/sovereign-debt-1185.

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