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> If we all used gold or bitcoin, there’s no reason to think public debt would be lower.

For reference, public debt tends to be higher when based in currencies that can be more easily debased. This was true in Roman times as it is now.

I’m on my phone, so I’d have to look up the book, but it’s well documented.

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Entirely possible, but defaults tend to be higher when debt is in a currency that cannot be debased, for somewhat obvious reasons.

There is a constraint the prevents (some) countries from more frequent debasement: if you debase your currency, then lenders will increasingly require that future debt be issued in an external currency. And even if you find lenders, the purchasing power provided in the debased currency remains constrained by external trade in non-debased currencies.

You make a very good point.

I should have noted that this applies only when it’s your own currency.

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