Re: two currencies and Korean war

[David Gleicher <104201.2301@xxxxxxxxxxxxxx>]

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>Per says:
Since this is 'inarguably' correct according to you, you might want to
explain you how else - if not by borrowing from the central bank, that is -
the government would fund its deficit? (Recall the issuance of debt
instruments to the public was ruled out by assumption.)<

Per, I'm not sure how far I want to go with this, and I'm certainly open to
being convinced, but I must ask, why is "the issuance of debt instruments
to the public ruled out"?   Historically, there are important examples of
states that raised money in this manner prior to collecting tax payments.
I suppose if you make this assumption you are correct, but what is the
relevance then?

DG