If a country prints lots of money to buy foreign currency bonds?

Discussion in 'Economics' started by crgarcia, Apr 8, 2008.

  1. What happens with the exchange rate?

    Some say its currency may initially devalue, but then it will revalue, as the bonds interests get back into the country.
  2. A country would wreak havoc on the financial stability of their economy merely to collect interest income from another country's bonds???

    Why do companies issue bonds in the first place? Remember what bonds are used for?